10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40478

LifeStance Health Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	86-1832801
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
4800 N. Scottsdale Road Suite 6000 Scottsdale, Arizona	85251
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (602) 767-2100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	LFST	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 2, 2023, the registrant had 378,005,241 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	2
	Consolidated Statements of Operations and Comprehensive Loss	3
	Consolidated Statements of Changes in Stockholders' Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28
Item 4.	Controls and Procedures	28
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signatures		33

i

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. For example, all statements we make relating to: our ability to grow our business, expand access to our patients and our payors and invest in our platform; our plan to partner with additional hospital systems, large primary care groups and other specialist groups; our expectation that we will continue to open de novo center and acquire new centers; our growth rates and financial results; our plans and objectives for future operations, growth or initiatives and strategies; and our expected market opportunity are forward-looking statements.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, factors and assumptions described in Part II, Item 1A, “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the "SEC") on March 9, 2023, including, among other things:

•we may not grow at the rates we historically have achieved or at all, even if our key metrics may imply future growth, including if we are unable to successfully execute on our growth initiatives and business strategies;

•if we fail to manage our growth effectively, our expenses could increase more than expected, our revenue may not increase proportionally or at all, and we may be unable to execute on our business strategy;

•our ability to recruit new clinicians and retain existing clinicians;

•if reimbursement rates paid by third-party payors are reduced or if third-party payors otherwise restrain our ability to obtain or deliver care to patients, our business could be harmed;

•we conduct business in a heavily regulated industry and if we fail to comply with these laws and government regulations, we could incur penalties or be required to make significant changes to our operations or experience adverse publicity, which could have a material adverse effect on our business, results of operations and financial condition;

•we are dependent on our relationships with affiliated practices, which we do not own, to provide health care services, and our business would be harmed if those relationships were disrupted or if our arrangements with these entities became subject to legal challenges;

•we operate in a competitive industry, and if we are not able to compete effectively, our business, results of operations and financial condition would be harmed;

•the impact of health care reform legislation and other changes in the healthcare industry and in health care spending on us is currently unknown, but may harm our business;

•if our or our vendors’ security measures fail or are breached and unauthorized access to our employees’, patients’ or partners’ data is obtained, our systems may be perceived as insecure, we may incur significant liabilities, including through private litigation or regulatory action, our reputation may be harmed, and we could lose patients and partners;

•our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems;

•our existing indebtedness could adversely affect our business and growth prospects; and

•the other factors set forth under “Risk Factors.”

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this report. We undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.

ii

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

LIFESTANCE HEALTH GROUP, INC.

CONSOLIDATED FINANCIAL STATEMENTS

For the quarterly period ended June 30, 2023

1

LIFESTANCE HEALTH GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except for par value)

	June 30, 2023			December 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$	79,605		$	108,621
Patient accounts receivable, net		121,796			100,868
Prepaid expenses and other current assets		36,480			23,734
Total current assets		237,881			233,223
NONCURRENT ASSETS
Property and equipment, net		193,144			194,189
Right-of-use assets		191,381			199,431
Intangible assets, net		243,788			263,294
Goodwill		1,293,502			1,272,939
Other noncurrent assets		11,221			10,795
Total noncurrent assets		1,933,036			1,940,648
Total assets	$	2,170,917		$	2,173,871
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	8,044		$	12,285
Accrued payroll expenses		81,144			75,650
Other accrued expenses		34,348			30,428
Current portion of contingent consideration		10,537			15,876
Operating lease liabilities, current		43,446			38,824
Other current liabilities		3,335			2,936
Total current liabilities		180,854			175,999
NONCURRENT LIABILITIES
Long-term debt, net		248,718			225,079
Operating lease liabilities, noncurrent		205,586			212,586
Deferred tax liability, net		38,324			38,701
Other noncurrent liabilities		2,559			2,783
Total noncurrent liabilities		495,187			479,149
Total liabilities	$	676,041		$	655,148
COMMITMENTS AND CONTINGENCIES (see Note 12)
STOCKHOLDERS’ EQUITY
Preferred stock – par value $0.01 per share; 25,000 shares authorized as of    June 30, 2023 and December 31, 2022; 0 shares issued and outstanding as    of June 30, 2023 and December 31, 2022		—			—
Common stock – par value $0.01 per share; 800,000 shares authorized as of    June 30, 2023 and December 31, 2022; 378,005 and 375,964 shares    issued and outstanding as of June 30, 2023 and December 31, 2022,    respectively		3,782			3,761
Additional paid-in capital		2,141,247			2,084,324
Accumulated other comprehensive income		4,151			3,274
Accumulated deficit		(654,304	)		(572,636	)
Total stockholders' equity		1,494,876			1,518,723
Total liabilities and stockholders’ equity	$	2,170,917		$	2,173,871

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

2

LIFESTANCE HEALTH GROUP, INC.

consolidated statements of operations and comprehensive loss

(unaudited)

(In thousands, except for Net Loss per Share)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
TOTAL REVENUE	$	259,578		$	209,527		$	512,167		$	412,622
OPERATING EXPENSES
Center costs, excluding depreciation and    amortization shown separately below		186,607			149,697			369,594			298,590
General and administrative expenses		101,854			103,559			186,480			206,928
Depreciation and amortization		19,530			16,743			38,599			32,427
Total operating expenses	$	307,991		$	269,999		$	594,673		$	537,945
LOSS FROM OPERATIONS	$	(48,413	)	$	(60,472	)	$	(82,506	)	$	(125,323	)
OTHER INCOME (EXPENSE)
Gain (loss) on remeasurement of    contingent consideration		1,539			(180	)		2,576			(614	)
Transaction costs		(3	)		(19	)		(89	)		(297	)
Interest expense, net		(5,119	)		(7,133	)		(10,211	)		(10,574	)
Other expense		(24	)		—			(69	)		—
Total other expense	$	(3,607	)	$	(7,332	)	$	(7,793	)	$	(11,485	)
LOSS BEFORE INCOME TAXES		(52,020	)		(67,804	)		(90,299	)		(136,808	)
INCOME TAX BENEFIT (PROVISION)		6,542			(923	)		10,579			5,753
NET LOSS	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
NET LOSS PER SHARE, BASIC AND    DILUTED		(0.13	)		(0.19	)		(0.22	)		(0.37	)
Weighted-average shares used to compute    basic and diluted net loss per share		363,161			353,729			362,039			352,297
NET LOSS	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
OTHER COMPREHENSIVE INCOME
Unrealized gains on cash flow hedge, net    of tax		2,147			—			877			—
COMPREHENSIVE LOSS	$	(43,331	)	$	(68,727	)	$	(78,843	)	$	(131,055	)

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

3

LIFESTANCE HEALTH GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(unaudited)

(In thousands)

	Common Stock						Additional Paid-in			Accumulated Other Comprehensive		Accumulated			Total Stockholders'
	Shares			Amount			Capital			Income		Deficit			Equity
Balances at March 31, 2023		376,537		$	3,767		$	2,108,184		$	2,004	$	(608,826	)	$	1,505,129
Net loss		—			—			—			—		(45,478	)		(45,478	)
Issuance of common stock upon    vesting of restricted stock units		2,295			23			(23	)		—		—			—
Forfeitures		(827	)		(8	)		(26	)		—		—			(34	)
Other comprehensive income		—			—			—			2,147		—			2,147
Stock-based compensation expense		—			—			33,112			—		—			33,112
Balances at June 30, 2023		378,005		$	3,782		$	2,141,247		$	4,151	$	(654,304	)	$	1,494,876

	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balances at March 31, 2022		374,323	$	3,744	$	1,958,174		$	(419,400	)	$	1,542,518
Net loss		—		—		—			(68,727	)		(68,727	)
Issuance of common stock upon    vesting of restricted stock units		1,858		19		(19	)		—			—
Stock-based compensation expense		—		—		57,510			—			57,510
Balances at June 30, 2022		376,181	$	3,763	$	2,015,665		$	(488,127	)	$	1,531,301

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

4

LIFESTANCE HEALTH GROUP, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(unaudited)

(In thousands)

	Common Stock						Additional Paid-in			Accumulated Other Comprehensive		Accumulated			Total Stockholders'
	Shares			Amount			Capital			Income		Deficit			Equity
Balances at December 31, 2022		375,964		$	3,761		$	2,084,324		$	3,274	$	(572,636	)	$	1,518,723
Net loss		—			—			—			—		(79,720	)		(79,720	)
Adoption of ASU 2016-13		—			—			—			—		(1,948	)		(1,948	)
Issuance of common stock upon    vesting of restricted stock units		4,006			40			(40	)		—		—			—
Forfeitures		(1,965	)		(19	)		(3,380	)		—		—			(3,399	)
Other comprehensive income		—			—			—			877		—			877
Stock-based compensation expense		—			—			60,343			—		—			60,343
Balances at June 30, 2023		378,005		$	3,782		$	2,141,247		$	4,151	$	(654,304	)	$	1,494,876

	Common Stock					Additional Paid-in			Accumulated			Total Stockholders'
	Units			Amount		Capital			Deficit			Equity
Balances at December 31, 2021		374,255		$	3,743	$	1,898,357		$	(357,072	)	$	1,545,028
Net loss		—			—		—			(131,055	)		(131,055	)
Issuance of common stock upon    vesting of restricted stock units		1,954			20		(57	)		—			(37	)
Forfeitures		(28	)		—		(185	)		—			(185	)
Stock-based compensation expense		—			—		117,550			—			117,550
Balances at June 30, 2022		376,181		$	3,763	$	2,015,665		$	(488,127	)	$	1,531,301

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

5

LIFESTANCE HEALTH GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)

	Six Months Ended June 30,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(79,720	)	$	(131,055	)
Adjustments to reconcile net loss to net cash (used in) provided by operating    activities:
Depreciation and amortization		38,599			32,427
Non-cash operating lease costs		20,263			—
Stock-based compensation		56,944			117,365
Loss on debt extinguishment		—			3,380
Amortization of discount and debt issue costs		1,076			748
(Gain) loss on remeasurement of contingent consideration		(2,576	)		614
Other, net		2,708			—
Change in operating assets and liabilities, net of businesses acquired:
Patient accounts receivable, net		(20,558	)		(21,900	)
Prepaid expenses and other current assets		(15,176	)		(5,351	)
Accounts payable		(5,395	)		1,731
Accrued payroll expenses		5,158			(289	)
Operating lease liabilities		(16,929	)		—
Other accrued expenses		7,282			13,471
Net cash (used in) provided by operating activities	$	(8,324	)	$	11,141
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(19,310	)		(53,775	)
Acquisitions of businesses, net of cash acquired		(19,820	)		(35,118	)
Net cash used in investing activities	$	(39,130	)	$	(88,893	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of discount		25,000			228,000
Payments of debt issue costs		(188	)		(7,184	)
Payments of long-term debt		(1,173	)		(181,230	)
Prepayment for debt paydown		—			(1,609	)
Payments of contingent consideration		(5,201	)		(11,090	)
Taxes related to net share settlement of equity awards		—			(478	)
Net cash provided by financing activities	$	18,438		$	26,409
NET DECREASE IN CASH AND CASH EQUIVALENTS		(29,016	)		(51,343	)
Cash and Cash Equivalents - Beginning of period		108,621			148,029
CASH AND CASH EQUIVALENTS – END OF PERIOD	$	79,605		$	96,686
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest, net	$	9,830		$	4,927
Cash paid for taxes, net of refunds	$	313		$	860
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND    FINANCING ACTIVITIES
Equipment financed through finance leases	$	—		$	256
Contingent consideration incurred in acquisitions of businesses	$	1,985		$	5,683
Acquisition of property and equipment included in liabilities	$	6,238		$	13,055

The accompanying Notes are an integral part of these Unaudited Consolidated Financial Statements.

6

LIFESTANCE HEALTH GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(In thousands, except per share amounts)

NOTE 1 NATURE OF THE BUSINESS

Description of Business

LifeStance Health Group, Inc. ("LifeStance" or the "Company") operates as a provider of outpatient mental health services, spanning psychiatric evaluations and treatment, psychological and neuropsychological testing, and individual, family and group therapy.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company's significant accounting policies are discussed in Note 2 "Summary of Significant Accounting Policies" in Item 15 of its Annual Report on Form 10-K for the year ended December 31, 2022. During the six months ended June 30, 2023, there have been no significant changes to these policies other than the addition to the cash and cash equivalents policy further described below.

Basis of Presentation and Principles of Consolidation

The Company has prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC regarding interim financial reporting, which include the accounts of LifeStance, its wholly-owned subsidiaries and variable interest entities ("VIEs") in which LifeStance has an interest and is the primary beneficiary. Pursuant to these rules and regulations, the Company has omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly state its consolidated financial condition, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s audited financial statements for the year ended December 31, 2022 in the Company's Annual Report on Form 10-K.

Use of Accounting Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Variable Interest Entities

The Company evaluates its ownership, contractual and other interests in entities to determine if it has any variable interest in a VIE. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available information. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. The Company performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change.

The Company acquires and operates certain care centers which are deemed to be Friendly-Physician Entities (“FPEs”). As part of an FPE acquisition, the Company acquires 100% of the non-medical assets, however due to legal requirements the physician-owners must retain 100% of the equity interest. The Company’s agreements with FPEs generally consist of both a Management Service Agreement, which provides for various administrative and management services to be provided by the Company to the FPE, and Stock Transfer Restriction (“STR”) agreements with the physician-owners of the FPEs, which provide for the transition of ownership interests of the FPEs under certain conditions. The outstanding voting equity instruments of the FPEs are owned by the nominee shareholders appointed by the Company under the terms of the STR agreements. The Company has the right to receive income as an ongoing management fee, which effectively absorbs all of the residual interests and has also provided financial support through loans to the FPEs. The Company has exclusive responsibility for the provision of all nonmedical services including facilities, technology and intellectual property required for the day-to-day operation and management of each of the FPEs, and makes recommendations to the FPEs in establishing the guidelines for the employment and compensation of the physicians and other employees of the FPEs. In addition, the STR agreements provide that the Company has the right to designate an appropriately licensed person(s) to purchase the equity interest of the FPE for a nominal amount in the event of a succession event at the Company’s discretion. Based on the

7

provisions of these agreements, the Company determined that the FPEs are VIEs due to the equity holder having insufficient capital at risk, and the Company has a variable interest in the FPEs.

The contractual arrangements described above allow the Company to direct the activities that most significantly affect the economic performance of the FPEs. Accordingly, the Company is the primary beneficiary of the FPEs and consolidates the FPEs under the VIE model. Furthermore, as a direct result of nominal initial equity contributions by the physicians, the financial support the Company provides to the FPEs (e.g., loans) and the provisions of the contractual arrangements and nominee shareholder succession arrangements described above, the interests held by noncontrolling interest holders lack economic substance and do not provide them with the ability to participate in the residual profits or losses generated by the FPEs. Therefore, all income and expenses recognized by the FPEs are allocated to the Company. The Company does not hold interests in any VIEs for which the Company is not deemed to be the primary beneficiary.

As noted previously, the Company acquires 100% of the non-medical assets of the VIEs. The aggregate carrying values of the VIEs total assets and total liabilities not purchased by the Company but included on the consolidated balance sheets were not material at June 30, 2023 and December 31, 2022.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less at the time of purchase. Cash and cash equivalents consist of demand deposits held with financial institutions and investments in money market funds.

Emerging Growth Company Status

The Company is currently an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the Company's unaudited consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

As of June 30, 2023, the market value of the Company's common stock held by non-affiliates exceeded $700 million. As a result, the Company will become a large accelerated filer beginning January 1, 2024 for future filings and will no longer be an emerging growth company. As a large accelerated filer, the Company will be subject to certain disclosure and compliance requirements that apply to other public companies but did not previously apply to the Company due to its status as an emerging growth company. These requirements include, but are not limited to: the requirement that the Company's independent registered public accounting firm attest to the effectiveness of the Company's internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; compliance with any requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors' report providing additional information about the audit and the financial statements; the requirement that the Company provide more detailed disclosures regarding executive compensation; and, the requirement that the Company hold a non-binding advisory vote on executive compensation and obtain shareholder approval of any golden parachute payments not previously approved.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326)-Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The estimate of expected credit losses requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The CECL model is expected to result in more timely recognition of credit losses. The Company adopted the standard on January 1, 2023 using the modified retrospective adoption method and did not have a material impact to the consolidated financial statements. The Company makes estimates of expected credit losses based on a combination of factors, including historical losses adjusted for current market conditions, the Company's customers' financial condition, delinquency trends, aging behaviors of receivables and credit and liquidity indicators, and future market and economic conditions and regularly reviews the adequacy of the allowance for credit losses.

8

NOTE 3 TOTAL REVENUE

The Company’s total revenue is dependent on a series of contracts with third-party payors, which is typical for providers in the health care industry. The Company has determined that the nature, amount, timing and uncertainty of revenue and cash flows are affected by the payor mix with third-party payors, which have different reimbursement rates.

The payor mix of fee-for-service revenue from patients and third-party payors consists of the following:

	Three Months Ended June 30,										Six Months Ended June 30,
	2023					2022					2023					2022
	Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue
Commercial	$	235,896		91	%	$	189,061		91	%	$	464,815		91	%	$	372,670		91	%
Government		10,999		4	%		9,063		4	%		21,950		4	%		17,896		4	%
Self-pay		10,384		4	%		8,723		4	%		20,131		4	%		17,098		4	%
Total patient service    revenue		257,279		99	%		206,847		99	%		506,896		99	%		407,664		99	%
Nonpatient service    revenue		2,299		1	%		2,680		1	%		5,271		1	%		4,958		1	%
Total	$	259,578		100	%	$	209,527		100	%	$	512,167		100	%	$	412,622		100	%

Among the commercial payors, the table below represents insurance companies that individually represented 10% or more of revenue:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Payor A		19	%		19	%		19	%		19	%
Payor B		13	%		14	%		13	%		14	%

NOTE 4 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following:

	June 30, 2023			December 31, 2022
Leasehold improvements	$	162,494		$	148,249
Computers and peripherals		27,701			26,650
Internal-use software		8,352			7,894
Furniture, fixtures and equipment		40,709			36,437
Medical equipment		950			950
Construction in process		11,285			16,892
Total	$	251,491		$	237,072
Less: Accumulated depreciation		(58,347	)		(42,883	)
Total property and equipment, net	$	193,144		$	194,189

Depreciation expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Depreciation expense	$	9,354	$	6,750	$	18,250	$	12,477

NOTE 5 LEASES

The Company adopted ASC 842 on January 1, 2022 utilizing the private company effective date which did not require adoption of the new standard for any interim periods of the fiscal year in which it was adopted. As of December 31, 2022 and June 30, 2023 and for the three and six months ended June 30, 2023, the Company accounts for its leases in accordance with ASC 842. For the comparative interim periods prior to 2023, the Company prepared its quarterly unaudited consolidated financial statements in accordance with ASC 840, which is a basis different from that of the current year. Accordingly, for the comparative three and six months ended June 30, 2022 leases are presented in accordance with ASC 840.

The Company leases its office facilities and office equipment which are accounted for as operating leases. Some leases contain clauses for renewal at the Company's option with renewal terms that generally extend the lease term from one to seven years.

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The components of lease expense for the Company's operating leases in its unaudited consolidated statements of operations and comprehensive loss were as follows:

	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Operating lease costs	$	14,264	$	28,572

Variable lease costs and short-term lease costs were not material.

The weighted-average remaining lease term and discount rate for operating lease liabilities included in the consolidated balance sheets are as follows:

	June 30, 2023			December 31, 2022
Weighted-average remaining lease term (in years)		5.0			5.3
Weighted-average discount rate		6.77	%		6.47	%

Supplemental cash flow information related to operating leases was as follows:

	Six Months Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	30,995
Noncash lease activity
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	14,554

The future minimum lease payments under noncancellable operating leases as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	25,987
2024		64,960
2025		61,345
2026		53,713
2027		40,457
Thereafter		49,810
Total lease payments	$	296,272
Less: imputed interest		(47,240	)
Total lease liabilities	$	249,032

The Company incurred $205 and $417 in related-party lease expense in its unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023, respectively. The Company recognized the following amounts in its unaudited consolidated balance sheets in connection with leases with related parties:

	June 30, 2023		December 31, 2022
Right-of-use assets	$	2,770	$	5,058
Operating lease liabilities, current		549		1,324
Operating lease liabilities, noncurrent		2,315		3,902

Total rent expense amounted to as follows in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Related-party rent expense	$	391	$	778
Third-party rent expense		12,137		23,296
Total lease cost	$	12,528	$	24,074

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NOTE 6 GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table summarizes changes in the carrying amount of goodwill:

	Amount
Balance as of December 31, 2022	$	1,272,939
Business acquisitions (Note 7)		20,733
Measurement period adjustments		(170	)
Balance as of June 30, 2023	$	1,293,502

Intangible Assets

Intangible assets consist of the following:

June 30, 2023	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,694	$	(20,358	)	$	16,336		5.0
LifeStance trade names		235,500		(32,791	)		202,709		22.5
Non-competition agreements		94,535		(69,792	)		24,743		4.2
Total intangible assets	$	366,729	$	(122,941	)	$	243,788

December 31, 2022	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,259	$	(16,688	)	$	19,571		5.0
LifeStance trade names		235,500		(27,557	)		207,943		22.5
Non-competition agreements		94,127		(58,347	)		35,780		4.2
Total intangible assets	$	365,886	$	(102,592	)	$	263,294

Gross carrying amount is based on the fair value of the intangible assets determined at the acquisition date. Total intangible asset amortization expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amortization expense	$	10,176	$	9,993	$	20,349	$	19,950

NOTE 7 BUSINESS COMBINATIONS

During the three months ended June 30, 2022 and six months ended June 30, 2023 and 2022, the Company completed the acquisitions of 4, 3 and 6 outpatient mental health practices, respectively. There were no completed acquisitions during the three months ended June 30, 2023. The Company accounted for the acquisitions as business combinations using the acquisition method of accounting. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the respective acquisition dates.

Total consideration transferred for these acquisitions consisted of the following:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Cash consideration	$	12,600	$	20,000	$	35,925
Contingent consideration, at initial fair value		3,213		1,985		5,683
Total consideration transferred	$	15,813	$	21,985	$	41,608

The results of the acquired businesses have been included in the Company’s consolidated financial statements beginning as of their acquisition dates. It is impracticable to provide historical supplemental pro forma financial information along with revenue and earnings subsequent to the acquisition dates for acquisitions during the period due to a variety of factors, including access to historical information and the operations of acquirees being integrated within the Company shortly after closing and not operating as discrete entities within the Company’s organizational structure.

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Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
Allocation of Purchase Price	June 30, 2022		2023		2022
Cash	$	430	$	181	$	851
Patient accounts receivable		707		372		1,193
Prepaid expenses and other current assets		166		138		230
Property and equipment		19		221		53
Right-of-use assets		—		368		—
Other noncurrent assets		53		22		56
Intangible assets		901		843		1,683
Goodwill		14,526		20,733		39,227
Total assets acquired		16,802		22,878		43,293
Total liabilities assumed		989		893		1,685
Fair value of net assets	$	15,813	$	21,985	$	41,608

The majority of the tangible assets acquired and liabilities assumed were recorded at their carrying values as of the respective dates of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. The Company developed estimates for the expected future cash flows and discount rates used in the present value calculations.

The following table summarizes the fair values of acquired intangible assets as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Regional trade names (1)	$	555	$	435	$	897
Non-competition agreements (2)		346		408		786
Total	$	901	$	843	$	1,683

(1)Useful lives for regional trade names are 5 years.

(2)Useful lives for non-competition agreements are 5 years.

Contingent Consideration

Under the provisions of the acquisition agreements, the Company may pay additional cash consideration in the form of earnouts, contingent upon the acquirees achieving certain performance and operational targets (see Note 8).

The following table summarizes the maximum contingent consideration based on the acquisition agreements:

	Three Months Ended		Six Months Ended June 30,
Contingent consideration	June 30, 2022		2023		2022
Maximum contingent consideration based on acquisition    agreements	$	4,200	$	2,650	$	7,200

Goodwill

Goodwill is primarily attributable to the assembled workforce, customer and payor relationships and anticipated synergies and economies of scale expected from the integration of the businesses. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved as a result of the acquisition. All goodwill is deductible for tax purposes.

NOTE 8 FAIR VALUE MEASUREMENTS

Contingent Consideration

The Company measures its contingent consideration liability at fair value on a recurring basis using Level 3 inputs. The Company estimates the fair value of the contingent consideration liability based on the likelihood and timing of the contingent earn-out

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payments. The following is the summary of the significant assumptions used for the fair value measurement of the contingent consideration liability as of June 30, 2023 and December 31, 2022.

Valuation Technique	Range of Significant Assumptions
		June 30, 2023	December 31, 2022
Probability-weighted analysis	Probability	50% - 100%	50% - 100%
based earn-outs	Discount rate	9.0%	8.0%

As of June 30, 2023 and December 31, 2022, the Company adjusted the fair value of the contingent consideration liability due to remeasurement at the reporting date. The noncurrent portion of the contingent consideration liability is included within other noncurrent liabilities on the unaudited consolidated balance sheets.

Hedging Activities

The Company uses derivative financial instruments, including an interest rate swap, for hedging and non-trading purposes to manage its exposure to changes in interest rates. The Company entered into a hedge transaction (interest rate swap) using a derivative financial instrument for the purpose of hedging the Company’s exposure to interest rate risks, which the contractual terms of the hedged instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. The objective of entering into the interest rate swap is to eliminate the variability of cash flows in the Secured Overnight Financing Rate ("SOFR") interest payments associated with the variable-rate loan over the life of the loan. In August 2022, the Company entered into an interest rate swap agreement to pay a fixed rate of 3.24% on a total notional value of $189,000 of debt. As a result of the interest rate swap, 94.5% of the term loan previously exposed to interest rate risk from changes in SOFR is now hedged against the interest rate swap at a fixed rate. The interest rate swap matures on September 30, 2025. As of June 30, 2023, the notional value was $187,583. As changes in interest rates impact the future cash flow of interest payments, the hedge provides a synthetic offset to interest rate movements.

The Company used the income approach to value the derivative for the interest rate swap using observable market data for all significant inputs and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. This derivative instrument (interest rate swap) is designated and qualifies as a cash flow hedge, with the entire gain or loss on the derivative reported as a component of other comprehensive income. Amounts recorded in accumulated other comprehensive income are released to earnings in the same period that the hedged transaction impacts consolidated earnings within interest expense, net. The cash flows from the derivative treated as a cash flow hedge is classified in the Company’s consolidated statements of cash flows in the same category as the item being hedged.

For the three and six months ended June 30, 2023, the Company included an immaterial gain on the hedged instrument (variable-rate borrowings) in the same line item (interest expense, net) as the offsetting gain on the related interest rate swap in the unaudited consolidated statements of operations and comprehensive loss.

The following table summarizes the location of the interest rate swap in the unaudited consolidated balance sheets:

	Consolidated balance sheets location	June 30, 2023		December 31, 2022
Interest rate swap	Other noncurrent assets	$	5,611	$	4,426

The amount of estimated cash flow hedge unrealized gains and losses that are expected to be reclassified to earnings in the next twelve months is not material.

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Fair Value Measured on a Recurring Basis

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:

	June 30, 2023			December 31, 2022
Assets Measured at Fair Value
Money market funds	$	57,021		$	—
Level 1	$	57,021		$	—
Interest rate swap asset	$	5,611		$	4,426
Level 2	$	5,611		$	4,426
Total assets measured at fair value	$	62,632		$	4,426
Liabilities Measured at Fair Value
Contingent consideration liability:
Beginning balance	$	17,824		$	17,430
Additions related to acquisitions		1,985			11,221
Payments of contingent consideration		(5,201	)		(12,515	)
(Gain) loss on remeasurement		(2,576	)		1,688
Ending balance		12,032			17,824
Level 3	$	12,032		$	17,824
Total liabilities measured at fair value	$	12,032		$	17,824

NOTE 9 LONG-TERM DEBT

On May 4, 2022, the Company entered into a credit agreement (the “2022 Credit Agreement”) among LifeStance Health Holdings, Inc., Lynnwood Intermediate Holdings, Inc., Capital One, National Association, and each lender party thereto. The 2022 Credit Agreement established commitments in respect of a term loan facility of $200,000, a revolving loan facility of up to $50,000 and a delayed draw term loan facility of up to $100,000. The commitments under the term loan facility and the revolving facility were available to be drawn on May 16, 2022. The Company borrowed $200,000 in term loans on that date, with a maturity date of May 16, 2028. The remaining commitments under the delayed draw term loan facility are scheduled to terminate on the second anniversary of May 16, 2022. Once drawn upon, the delayed draw term loan facility has a maturity date of May 16, 2028. The loans under the term loan facility and the delayed draw term loan facility bear interest at a rate per annum equal to (x) adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus an applicable margin of 4.50% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus 1.00%) plus an applicable margin of 3.50%. The term loans are collateralized by substantially all of the assets of the Company. The revolving loan has interest only payments until the maturity date of May 16, 2027.

The 2022 Credit Agreement requires the Company to maintain compliance with certain restrictive financial covenants related to earnings, leverage ratios, and other financial metrics. The Company was in compliance with all debt covenants at June 30, 2023 and December 31, 2022.

Long-term debt consists of the following:

	June 30, 2023			December 31, 2022
Term loans	$	198,500		$	199,500
Delayed Draw loans		59,291			34,464
Total long-term debt		257,791			233,964
Less: Current portion of long-term debt		(2,595	)		(2,345	)
Less: Unamortized discount and debt issue costs (1)		(6,478	)		(6,540	)
Total Long-Term Debt, Net of Current Portion    and Unamortized Discount and Debt Issue Costs	$	248,718		$	225,079

(1)The unamortized debt issue costs related to long-term debt are presented as a reduction of the carrying amount of the corresponding liabilities on the unaudited consolidated balance sheets. Unamortized debt issue costs related to delayed draw term loan commitments and revolving loans are presented within other noncurrent assets on the unaudited consolidated balance sheets.

The current portion of long-term debt is included within other current liabilities on the unaudited consolidated balance sheets.

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Interest expense, net consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest expense, net	$	5,119	$	7,133	$	10,211	$	10,574

Future principal payments on long-term debt as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	1,298
2024		2,595
2025		2,595
2026		2,595
2027		2,595
Thereafter		246,113
Total	$	257,791

The fair value of long-term debt is based on the present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities, which is a Level 2 fair value measurement. Long-term debt is presented at carrying value on the unaudited consolidated balance sheets. The fair value of long-term debt at June 30, 2023 and December 31, 2022 was $262,681 and $235,049, respectively.

Revolving Loan

Under the 2022 Credit Agreement, the Company has a revolving loan commitment from Capital One in the amount of $50,000. Any borrowing on the revolving loan under the 2022 Credit Agreement is due in full on May 16, 2027. The revolving loan bears interest at a rate per annum equal to (x) adjusted term SOFR plus an applicable margin of 3.25% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR plus 1.00%) plus an applicable margin of 2.25%. The unused revolving loan incurs a commitment fee of 0.50% per annum.

In April 2023, the Company drew $25,000 from the aforementioned revolving loan and converted the outstanding balance on the revolving loan to a delayed draw term loan in May 2023. There are no amounts outstanding on the revolving loan as of June 30, 2023 and December 31, 2022.

NOTE 10 STOCK-BASED COMPENSATION

2021 Equity Incentive Plan

Effective June 9, 2021, the Company’s Board of Directors (the "Board") and its stockholders as of that date adopted and approved the LifeStance Health Group, Inc. 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan”). The 2021 Equity Incentive Plan permits the grant of awards or restricted or unrestricted common stock, stock options, stock appreciation rights, restricted stock units, performance awards, and other stock-based awards to employees and directors of, and consultants and advisors to, the Company and its affiliates. On January 1, 2023, the number of shares of common stock reserved and available for issuance under the 2021 Equity Incentive Plan increased by 18,798 shares.

Restricted Stock Awards ("RSA")

The following is a summary of RSA transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Unvested, December 31, 2022		16,796		$	11.98
Vested		(9,095	)		11.98
Forfeited		(1,965	)		11.98
Unvested, June 30, 2023		5,736		$	11.98

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Restricted Stock Units ("RSU")

The following is a summary of RSU transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Outstanding, December 31, 2022		14,203		$	10.61
Granted		17,755			6.08
Vested		(4,006	)		12.86
Canceled and forfeited		(2,143	)		9.39
Outstanding, June 30, 2023		25,809		$	7.25

Stock Options

The following is a summary of stock option activity as of and for the six months ended June 30, 2023:

	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2022		13,476	$	7.42		9.70	$	—
Granted		—		—
Exercised		—		—				—
Canceled and forfeited		—		—
Outstanding, June 30, 2023		13,476	$	7.42		9.21	$	23,083
Vested or expected to vest at June 30, 2023		13,476	$	7.42		9.21	$	23,083

Stock-Based Compensation Expense

The Company recognized stock-based compensation expense related to RSAs, RSUs, and stock options within general and administrative expenses in the unaudited consolidated statements of operations and comprehensive loss as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Stock-based compensation expense	$	33,078	$	57,510	$	56,944	$	117,365

As of June 30, 2023, the Company had $199,683 in unrecognized compensation expense related to all non-vested awards (RSAs, RSUs and stock options) that will be recognized over the weighted-average remaining service period of 2.4 years.

2021 Employee Stock Purchase Plan

Effective June 9, 2021, the Board and its stockholders as of that date adopted and approved the LifeStance Health Group, Inc. 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP is more fully described in Note 14 in the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

As of June 30, 2023, no shares of common stock have been purchased under the Company’s ESPP.

NOTE 11 INCOME TAXES

The (benefit) provision for income taxes is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
(Benefit) provision for income taxes	$	(6,542	)	$	923	$	(10,579	)	$	(5,753	)

The effective tax rates are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Effective tax rate		12.6	%		(1.4	)%		11.7	%		4.2	%

The difference between the Company’s effective tax rate and the U.S. statutory tax rate of 21% was primarily the result of non-deductible equity awards. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized.

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NOTE 12 COMMITMENTS AND CONTINGENCIES

Professional Liability Insurance

The medical malpractice insurance coverage is subject to a $3,000 per claim limit and an annual aggregate shared limit of $8,000. Should the claims-made policy not be renewed or replaced with equivalent insurance, claims based on occurrences during its term, but reported subsequently, would be uninsured. The Company is not aware of any unasserted claims, unreported incidents, or claims outstanding that are expected to exceed malpractice insurance coverage limits as of June 30, 2023 and December 31, 2022.

Health Care Industry

The health care industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, and government health care program participation requirements, reimbursement for patient services, and Medicare fraud and abuse. Recently, government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by health care providers. Violation of these laws and regulations could result in expulsion from government health care programs together with imposition of significant fines and penalties, as well as significant repayments for patient services billed.

Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. As a result of investigations by governmental agencies, various health care companies have received requests for information and notices regarding alleged noncompliance with those laws and regulations, which, in some instances, have resulted in companies entering into significant settlement agreements. Compliance with such laws and regulations may also be subject to future government review and interpretation as well as significant regulatory action, including fines, penalties, and potential exclusion from the related programs. There can be no assurance that regulatory authorities will not challenge the Company’s compliance with these laws and regulations, and it is not possible to determine the impact (if any) such claims or penalties would have upon the Company. In addition, the contracts the Company has with commercial payors also provide for retroactive audit and review of claims.

Management believes that the Company is in substantial compliance with fraud and abuse as well as other applicable government laws and regulations. While no regulatory inquiries have been made, compliance with such laws and regulations is subject to government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

General Contingencies

The Company is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions, injuries to employees, and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. There has been no significant reduction in insurance coverage from the previous year in any of the Company’s policies.

Litigation

The Company may be involved from time-to-time in legal actions relating to the ownership and operations of its business. Liabilities related to loss contingencies are recognized when the Company believes it is probable a liability has occurred and the amount can be reasonably estimated by management. The Company will establish an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated.

On August 10, 2022, a shareholder class action lawsuit captioned Nayani v. LifeStance Health Group, Inc., et al. was filed in the United States District Court for the Southern District of New York (the “Court”) against the Company and certain executives and board members (the “LifeStance Defendants”), as well as the underwriters of the Company’s initial public offering (the “IPO”) (collectively, “Defendants”). The lawsuit alleges, in part, that the Defendants violated Section 11 of the Securities Act of 1933 (the “Securities Act”) because the IPO registration statement purportedly contained inaccurate and misleading statements and/or failed to disclose certain facts concerning patient visits and clinician retention. The lawsuit also asserts that the LifeStance Defendants violated Section 15 of the Securities Act because they are control persons of the Company. The lawsuit seeks unspecified monetary damages and purports to represent all shareholders who purchased the Company’s common stock pursuant to the IPO registration statement. The process of resolving these matters is inherently uncertain and may develop over an extended period of time; therefore, at this time, the ultimate resolution cannot be predicted. The Company has not recorded any material accruals for loss contingencies and in management's opinion no material range of loss is estimable for this matter as of June 30, 2023.

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NOTE 13 NET LOSS PER SHARE

The following table presents the calculation of basic and diluted net loss per share (“EPS”) for the Company’s common shares:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net loss available to common stockholders'	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
Weighted-average shares used to compute basic and    diluted net loss per share		363,161			353,729			362,039			352,297
Net loss per share, basic and diluted	$	(0.13	)	$	(0.19	)	$	(0.22	)	$	(0.37	)

The Company has issued potentially dilutive instruments in the form of RSAs, RSUs and stock options. The Company did not include any of these instruments in its calculation of diluted loss per share for the three and six months ended June 30, 2023 and 2022 because to include them would be anti-dilutive due to the Company’s net loss during the period. See Note 10 for the issued, vested and unvested RSAs, RSUs and stock options. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share:

	As of June 30,
	2023		2022
RSAs		5,736		19,081
RSUs		25,809		14,994
Stock options		13,476		—
		45,021		34,075

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and the accompanying notes as well as "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2022. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth under “Risk Factors” Part II, Item 1A in this Quarterly Report on Form 10-Q as well as those discussed in the Annual Report on Form 10-K for the year ended December 31, 2022, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Unless stated otherwise or the context otherwise requires, the terms "we," "us," "our," "our business," "LifeStance" and "our Company" and similar references refer to LifeStance Health Group, Inc. and its consolidated subsidiaries and affiliated practices. References to "our employees" and "our clinicians" refer collectively to employees and clinicians, respectively, of our subsidiaries and affiliated practices. References to "our patients" refer to the patients treated by such clinicians.

Our Business

We are reimagining mental health through a disruptive, tech-enabled care delivery model built to expand access, address affordability, improve outcomes and lower overall health care costs. We are one of the nation’s largest outpatient mental health platforms based on the number of clinicians we employ through our subsidiaries and our affiliated practices and our geographic scale, employing 6,132 licensed mental health clinicians as of June 30, 2023. Our patient-focused platform combines a personalized, digitally-powered patient experience with differentiated clinical capabilities and in-network insurance relationships to fundamentally transform patient access and treatment. By revolutionizing the way mental health care is delivered, we believe we have an opportunity to improve the lives and health of millions of individuals.

Our model is built to empower each of the healthcare ecosystem’s key stakeholders—patients, clinicians, payors and primary care and specialist physicians—by aligning around our shared goal of delivering better outcomes for patients and providing high-quality mental health care.

•Patients - We are the front-door to comprehensive outpatient mental health care. Our clinicians offer patients a full spectrum of outpatient services to treat mental health conditions. Our in-network payor relationships improve patient access by allowing patients to access care without significant out-of-pocket cost or delays in receiving treatment. Our personalized, data-driven comprehensive care meets patients where they are, through convenient virtual and in-person settings. We support our patients throughout their care continuum with purpose-built technological capabilities, including online assessments, digital provider communication, and seamless internal referral and follow-up capabilities.

•Clinicians - We empower clinicians to focus on patient care and relationships by providing what we believe is a superior workplace environment, as well as clinical and technology capabilities to deliver high-quality care. We offer a unique employment model for clinicians in a collaborative clinical environment, employing our clinicians through our subsidiaries and affiliated practices. Our integrated platform and national infrastructure reduce administrative burdens for clinicians while increasing engagement and satisfaction.

•Payors - We partner with payors to deliver access to high-quality outpatient mental health care to their members at scale. Through our extensive scale, we offer payors a pathway to reduce overall cost of care in the broader healthcare system while supporting improved physical and mental health outcomes.

•Primary care and specialist physicians - We collaborate with primary care and specialist physicians to enhance patient care. Primary care is an important setting for the treatment of mental health conditions—primary care physicians are often the sole contact of patients with a mental illness and, in many instances where patients have a chronic condition, specialist physicians step into the role of primary physicians. We partner with primary care physicians and specialist physician groups across the country to provide a mental healthcare network for referrals and, in certain instances, through virtual and physical co-location to improve the diagnosis and treatment of their patients.

COVID-19 Impact

We believe the COVID-19 pandemic represented a paradigm shift in the importance of and focus on mental health care. We saw a significant increase in patient demand as well as payor and employer adoption of mental health coverage options during the pandemic. However, as the pandemic surged and waned, we believe there has been some impact on our operations, including due to patient and clinician illness, which resulted in cancellations of appointments, deferrals and fewer appointments initially scheduled.

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Key Factors Affecting Our Results

Expanding Center Capacity and Visits Within Existing Centers

We have built a powerful organic growth engine that enables us to drive growth within our existing footprint.

Our Clinicians

As of June 30, 2023, we employed 6,132 psychiatrists, advanced practice nurses, psychologists and therapists through our subsidiaries and affiliated practices. We generate revenue on a per visit basis as clinical services are rendered by our clinicians. We generate lower revenue and experience lower clinician productivity in periods that have fewer business days than other periods. Recruiting new clinicians and retaining existing clinicians enables us to see more patients by expanding our patient visit capacity. We believe our dedicated employment model offers a superior value proposition compared to independent practice. Our network relationships provide clinicians with ready access to patients. We also enable clinicians to manage their own patient volumes. Our platform promotes a clinically-driven professional culture and streamlines patient access and care delivery, while optimizing practice administration processes through technology. We believe we are an employer of choice in mental health, allowing us to employ highly qualified clinicians.

We believe we have significant opportunity to grow our employed clinician base from our current base of 6,132 clinicians employed through our subsidiaries and affiliated practices, as of June 30, 2023. We have developed a rigorous and exclusive in-house national clinician recruiting model that works closely with our regional clinical teams to select the best candidates and expand capacity in a timely manner. As we grow our clinician base, we can grow our business, expand access for our patients and payors and invest in our platform to further reinforce our differentiated offering to clinicians. We have available physical capacity to add clinicians to our existing centers, as well as an opportunity to add new clinicians with the roll-out of de novo centers. Our virtual care offering also allows clinicians to see more patients without investments in incremental physical space, expanding our patient visit capacity beyond in-person only levels.

Our Patients

We believe our ability to attract and retain patients to drive growth in our visits and meet the availability of our clinician base will enable us to grow our revenue. We believe we have a significant opportunity to increase the number of patients we serve in our existing markets. In 2022, our clinicians treated more than 680,000 unique patients through 5.7 million visits. We believe our ability to deliver more accessible, flexible, affordable and effective mental health care is a key driver of our patient growth. We believe we provide a superior and differentiated mental health care experience that integrates virtual and in-person care to deliver care in a convenient way for our patients, meeting our patients where they are. Our in-network payor relationships allow our patients to access care without significant out-of-pocket cost or delays in receiving treatment. We treat mental health conditions across the outpatient spectrum through a clinical approach that delivers improved patient outcomes. We support our patients throughout their care continuum with purpose-built technological capabilities, including online assessments, digital provider communication, and seamless internal referral and follow-up capabilities.

We utilize multiple strategies to add new patients to our platform, including our primary care and specialist physician relationships, internal referrals from our clinicians, our payor relationships and our dedicated marketing efforts. We have established a large network of national, regional and local payors that enables their members to be referred to us as patients. Payors refer patients to our platform to drive improvement in health outcomes for their members, reduction in total medical costs and increased member satisfaction and retention. Within our markets, we partner with primary care practice groups, specialists, health systems and academic institutions to refer patients to our centers and clinicians. Our local marketing teams build and maintain relationships with our referring partner networks to create awareness of our platform and services, including the opening of new centers and the introduction of newly hired clinicians with appointment availability. We also use online marketing to develop our national brand to increase brand awareness and promote additional channels of patient recruitment.

Our Primary Care and Specialist Physician Referral Relationships

We have built a powerful patient referral network through partnerships with primary care physicians and specialist physician groups across the country. We deliver value to our provider partners by offering a more efficient referral pathways, delivering improved outcomes for our shared patients, and enabling more integrated care and lower total health care costs. As we continue to scale nationally, we plan to partner with additional hospital systems, large primary care groups and other specialist groups to help streamline their mental health network needs and drive continued patient growth across our platform. Our vision over time is to further integrate our mental health care services with those of our medical provider partners. By co-locating and driving towards integration with primary care and specialty providers, we can enhance our clinician’s access to patients. We anticipate that we will continue to grow these relationships while evolving our offering toward a fully-integrated care model in which primary care and our mental health clinicians work together to develop and provide personalized treatment plans for shared patients. We believe these efforts will help to further align our model with that of other health care providers increasing our value to them and driving new opportunities to partner to grow our patient base and revenue opportunities.

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Our Payors

Our payor relationships, including national contracts with multiple payors, allow access to our services through in-network coverage for their members. We believe the alignment of our model with our payor partners’ population health objectives encourages third-party payors to partner with us. We believe we deliver value to our payor partners in several ways, including access to a national clinician employee base, lower total medical costs, and stronger member and client value proposition through the offering of in-network mental health services. The strength of our payor relationships and our value proposition allowed us to secure rate parity between in-person and virtual visits, either by contract or payor policy. To expand this network and grow access to covered patients, we continue to establish new payor relationships and national contracts while also seeking to drive regional rate improvement to support continued investment in our differentiated model for delivering mental healthcare. We believe our payor relationships differentiate us from our competitors and are a critical factor in our ability to expand our market footprint in new regions by leveraging our existing national payor relationships. As we continue to grow, we believe our scale, breadth and access will continue to be enhanced, further strengthening the value of our platform to payors.

Expand and Optimize our Center Base Within Existing and New Markets

We believe we have developed a highly replicable playbook that allows us to enter new markets and pursue growth through multiple vectors. We typically identify new markets based on the core characteristics of patient population demographics, substantial clinician recruiting opportunities, untreated patient communities and a diverse group of payors. To enter new markets, we seek to open de novo centers or acquire high-quality practices with a track record of clinical excellence and in-network payor relationships. Once we enter a new market, our powerful organic growth engine drives our growth through de novo openings, center expansion and optimization, clinician recruiting and tuck-in acquisitions.

De Novo Builds

Our de novo center strategy is a central component of our organic growth engine to build our capacity and increase density in our existing metropolitan statistical areas. From our inception in 2017 through June 30, 2023, we have successfully opened 331 de novo centers, including 15 de novo centers in 2023, 90 de novo centers in 2022, and 106 de novo centers in 2021. We believe there is a significant opportunity to use de novo center openings to address potential patient need in our existing markets and new markets that we have determined are attractive to enter. We systematically locate our centers within a given market to ensure convenient coverage for in-person access to care. We believe our successful de novo program and national clinician recruiting team can support additions of new centers and clinicians. We continue to utilize a more sustainable design for all new de novo centers that reimagines the mental healthcare experience for both patients and clinicians while reinforcing our commitment to sustainability.

Acquisitions

We believe the highly fragmented nature of the mental health market provides us with a meaningful opportunity to execute on our acquisition playbook. We seek to acquire select practices that meet our standards of high-quality clinical care and align with our mission. We believe our guiding principle of creating a national platform built with a patient and clinician focus makes us a partner of choice for smaller, independent practices. Our acquisition strategy is deployed both to enter new markets and in our existing markets. In new markets, acquisitions allow us to establish a presence with high-quality practices with a track record of clinical excellence and in-network payor relationships that can be integrated into our national platform. In existing markets, acquisitions allow us to grow our geographic reach and clinician base to expand patient access.

Center Margin

As we grow our platform, we seek to generate consistent returns on our investments. See “—Key Metrics and Non-GAAP Financial Measures—Center Margin” for our definition of Center Margin and reconciliation to loss from operations. We believe this metric best reflects the economics of our model as it includes all direct expenses associated with our patients’ care. We seek to grow our Center Margin through a combination of (i) growing revenue through clinician hiring and retention, patient growth and engagement, hybrid virtual and in-person care, existing office expansion, and in-network reimbursement levels, and (ii) leveraging on our fixed cost base at each center. For acquired centers, we also seek to realize operational, technology and reimbursement synergies to drive Center Margin growth.

Investments in Growth

We will continue to focus on long-term growth through investments in our centers and technology. In addition, we expect our general and administrative expenses to increase in the foreseeable future due to our planned investments in growth initiatives and public company infrastructure.

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Key Metrics and Non-GAAP Financial Measures

We evaluate the growth of our footprint through a variety of metrics and indicators. The following table sets forth a summary of the key financial metrics we review to evaluate our business, measure our performance, identify trends affecting our business, formulate our business plan and make strategic decisions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
(in thousands)
Total revenue	$	259,578		$	209,527		$	512,167		$	412,622
Revenue growth		24	%		31	%		24	%		36	%
Loss from operations		(48,413	)		(60,472	)		(82,506	)		(125,323	)
Center Margin		72,971			59,830			142,573			114,032
Net loss		(45,478	)		(68,727	)		(79,720	)		(131,055	)
Adjusted EBITDA		14,065			14,632			24,169			27,114

Center Margin and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles ("GAAP") and are not intended to be substitutes for any GAAP financial measures, including revenue, loss from operations or net loss, and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, non-GAAP measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

Center Margin

We define Center Margin as loss from operations excluding depreciation and amortization and general and administrative expenses. Therefore, Center Margin is computed by removing from loss from operations the costs that do not directly relate to the delivery of care and only including center costs, excluding depreciation and amortization. We consider Center Margin to be an important measure to monitor our performance relative to the direct costs of delivering care. We believe Center Margin is useful to investors to measure whether we are sufficiently controlling the direct costs of delivering care.

Center Margin is not a financial measure of, nor does it imply, profitability. The relationship of loss from operations to center costs, excluding depreciation and amortization is not necessarily indicative of future profitability from operations. Center Margin excludes certain expenses, such as general and administrative expenses, and depreciation and amortization, which are considered normal, recurring operating expenses and are essential to support the operation and development of our centers. Therefore, this measure may not provide a complete understanding of the operating results of our Company as a whole, and Center Margin should be reviewed in conjunction with our GAAP financial results. Other companies that present Center Margin may calculate it differently and, therefore, similarly titled measures presented by other companies may not be directly comparable to ours. In addition, Center Margin has limitations as an analytical tool, including that it does not reflect depreciation and amortization or other overhead allocations.

The following table provides a reconciliation of loss from operations, the most closely comparable GAAP financial measure, to Center Margin:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
(in thousands)
Loss from operations	$	(48,413	)	$	(60,472	)	$	(82,506	)	$	(125,323	)
Adjusted for:
Depreciation and amortization		19,530			16,743			38,599			32,427
General and administrative expenses (1)		101,854			103,559			186,480			206,928
Center Margin	$	72,971		$	59,830		$	142,573		$	114,032

(1)Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees.

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Adjusted EBITDA

We present Adjusted EBITDA, a non-GAAP performance measure, to supplement our results of operations presented in accordance with generally accepted accounting principles, or GAAP. We believe Adjusted EBITDA is useful in evaluating our operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding our operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, our Adjusted EBITDA should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP, such as net income or loss.

We define Adjusted EBITDA as net loss excluding interest expense, depreciation and amortization, income tax (benefit) provision, (gain) loss on remeasurement of contingent consideration, stock-based compensation, loss on disposal of assets, transaction costs, executive transition costs, litigation costs, strategic initiatives, special charges, and other expenses. We include Adjusted EBITDA in this Quarterly Report because it is an important measure upon which our management assesses, and believes investors should assess, our operating performance. We consider Adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis.

However, Adjusted EBITDA has limitations as an analytical tool, including:

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash used for capital expenditures for such replacements or for new capital expenditures;

•Adjusted EBITDA does not include the dilution that results from equity-based compensation or any cash outflows included in equity-based compensation, including from our repurchases of shares of outstanding common stock; and

•Adjusted EBITDA does not reflect interest expense on our debt or the cash requirements necessary to service interest or principal payments.

A reconciliation of net loss to Adjusted EBITDA is presented below for the three and six months ended June 30, 2023 and 2022. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted EBITDA in conjunction with net loss.

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
(in thousands)
Net loss	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
Adjusted for:
Interest expense, net		5,119			7,133			10,211			10,574
Depreciation and amortization		19,530			16,743			38,599			32,427
Income tax (benefit) provision		(6,542	)		923			(10,579	)		(5,753	)
(Gain) loss on remeasurement of    contingent consideration		(1,539	)		180			(2,576	)		614
Stock-based compensation expense		33,078			57,510			56,944			117,365
Loss on disposal of assets		24			—			69			—
Transaction costs (1)		3			19			89			297
Executive transition costs		362			—			522			—
Litigation costs (2)		3,446			—			3,849			—
Strategic initiatives (3)		2,045			—			2,452			—
Special charges (4)		3,720			—			3,720			—
Other expenses (5)		297			851			589			2,645
Adjusted EBITDA	$	14,065		$	14,632		$	24,169		$	27,114

(1)Primarily includes capital markets advisory, consulting, accounting and legal expenses related to our acquisitions.

(2)Litigation costs include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case, (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy.

(3)Represents costs, such as third-party consulting costs and one-time costs, that are not part of our ongoing operations related to our systems strategic initiatives.

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(4)Special charges include certain asset impairment costs, certain gains and losses related to early lease terminations, and exit and disposal costs related to our real estate optimization project to consolidate our physical footprint.

(5)Primarily includes costs incurred to consummate or integrate acquired centers, certain of which are wholly-owned and certain of which are affiliated practices, in addition to the compensation paid to former owners of acquired centers and related expenses that are not reflective of the ongoing operating expenses of our centers. Acquired center integration and other are components of general and administrative expenses included in our unaudited consolidated statements of operations and comprehensive loss. Former owner fees is a component of center costs, excluding depreciation and amortization included in our unaudited consolidated statements of operations and comprehensive loss. These costs are summarized for each period in the table below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
(in thousands)
Acquired center integration (1)	$	210	$	615	$	319	$	1,213
Former owner fees (2)		46		60		84		287
Other (3)		41		176		186		1,145
Total	$	297	$	851	$	589	$	2,645

(1)Represents costs incurred pre- and post-center acquisition to integrate operations, including expenses related to conversion of compensation model, legacy system costs and data migration, consulting and legal services, and overtime and temporary labor costs.

(2)Represents short-term agreements, generally with terms of three to six months, with former owners of acquired centers, to provide transition and integration services.

(3)Primarily includes severance expense unrelated to integration services.

Results of Operations

The following table sets forth a summary of our financial results for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
(in thousands)
TOTAL REVENUE	$	259,578		$	209,527		$	512,167		$	412,622
OPERATING EXPENSES
Center costs, excluding depreciation and    amortization shown separately below		186,607			149,697			369,594			298,590
General and administrative expenses		101,854			103,559			186,480			206,928
Depreciation and amortization		19,530			16,743			38,599			32,427
Total operating expenses	$	307,991		$	269,999		$	594,673		$	537,945
LOSS FROM OPERATIONS	$	(48,413	)	$	(60,472	)	$	(82,506	)	$	(125,323	)
OTHER INCOME (EXPENSE)
Gain (loss) on remeasurement of    contingent consideration		1,539			(180	)		2,576			(614	)
Transaction costs		(3	)		(19	)		(89	)		(297	)
Interest expense, net		(5,119	)		(7,133	)		(10,211	)		(10,574	)
Other expense		(24	)		—			(69	)		—
Total other expense	$	(3,607	)	$	(7,332	)	$	(7,793	)	$	(11,485	)
LOSS BEFORE INCOME TAXES		(52,020	)		(67,804	)		(90,299	)		(136,808	)
INCOME TAX BENEFIT (PROVISION)		6,542			(923	)		10,579			5,753
NET LOSS	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)

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Total Revenue

Total revenue increased $50.1 million, or 24%, to $259.6 million for the three months ended June 30, 2023 from $209.5 million for the three months ended June 30, 2022. This was primarily due to an increase composed of $50.4 million of patient service revenue due to an increase in patient visits and slightly offset by a decrease of $0.3 million of nonpatient revenue.

Total revenue increased $99.6 million, or 24%, to $512.2 million for the six months ended June 30, 2023 from $412.6 million for the six months ended June 30, 2022. This was primarily due to an increase composed of $99.3 million of patient service revenue due to an increase in patient visits and $0.3 million of nonpatient revenue.

Operating Expenses

Center costs, excluding depreciation and amortization

Center costs, excluding depreciation and amortization increased $36.9 million, or 25%, to $186.6 million for the three months ended June 30, 2023 from $149.7 million for the three months ended June 30, 2022. This was primarily due to a $34.4 million increase in center-based compensation due to the increase in clinicians and visits and a $2.5 million increase in occupancy costs consisting of center rent and utilities and other operating expenses consisting of office supplies and insurance due to the increase in our number of centers.

Center costs, excluding depreciation and amortization increased $71.0 million, or 24%, to $369.6 million for the six months ended June 30, 2023 from $298.6 million for the six months ended June 30, 2022. This was primarily due to a $66.7 million increase in center-based compensation due to the increase in clinicians and visits and a $4.3 million increase in occupancy costs consisting of center rent and utilities and other operating expenses consisting of office supplies and insurance due to the increase in our number of centers.

General and administrative expenses

General and administrative expenses decreased $1.7 million, or 2%, to $101.9 million for the three months ended June 30, 2023 from $103.6 million for the three months ended June 30, 2022. This was primarily due to a decrease of $24.4 million in stock-based compensation expense primarily relating to RSAs and the RSUs granted at the time of our initial public offering ("IPO") without a similar expense in 2023, which was offset by increases in salaries, wages and employee benefits of $9.3 million, $5.7 million in occupancy costs and $7.7 million in other operating expenses, including professional services.

General and administrative expenses decreased $20.4 million, or 10%, to $186.5 million for the six months ended June 30, 2023 from $206.9 million for the six months ended June 30, 2022. This was primarily due to a decrease of $60.4 million in stock-based compensation expense primarily relating to RSAs and the RSUs granted at the time of our IPO without a similar expense in 2023, which was offset by increases in salaries, wages and employee benefits of $20.6 million, $7.3 million in occupancy costs and $12.1 million in other operating expenses, including professional services.

Depreciation and amortization

Depreciation and amortization expense increased $2.8 million to $19.5 million for the three months ended June 30, 2023 from $16.7 million for the three months ended June 30, 2022. This was primarily due to the amortization of intangibles and depreciation during the periods.

Depreciation and amortization expense increased $6.2 million to $38.6 million for the six months ended June 30, 2023 from $32.4 million for the six months ended June 30, 2022. This was primarily due to the amortization of intangibles and depreciation during the periods.

Other Expense

Interest Expense, net

Interest expense decreased $2.0 million to $5.1 million for the three months ended June 30, 2023 from $7.1 million for the three months ended June 30, 2022. This decrease was primarily due to the decrease of extinguishment of debt charge of $3.4 million related to the extinguishment of the May 2020 Credit Agreement during the second quarter of 2022 and offset by higher borrowings outstanding during the period.

Interest expense decreased $0.4 million to $10.2 million for the six months ended June 30, 2023 from $10.6 million for the six months ended June 30, 2022. This decrease was primarily due to the decrease of extinguishment of debt charge of $3.4 million related to the extinguishment of the May 2020 Credit Agreement during the second quarter of 2022 and offset by higher borrowings outstanding during the period.

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Income Tax Benefit (Provision)

Income tax benefit increased $7.4 million to $6.5 million for the three months ended June 30, 2023 from a $0.9 million provision for the three months ended June 30, 2022 primarily due to non-deductible equity awards for the three months ended June 30, 2023.

Income tax benefit increased $4.8 million to $10.6 million for the six months ended June 30, 2023 from $5.8 million benefit for the six months ended June 30, 2022 primarily due to non-deductible equity awards for the six months ended June 30, 2023.

Liquidity and Capital Resources

We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital needs, capital expenditures, including to execute on our de novo strategy, contractual obligations, debt service, acquisitions, settlement of contingent considerations obligations, and other commitments with cash flows from operations and other sources of funding. Our principal sources of liquidity to date have included cash from operating activities, cash on hand and amounts available under that certain credit agreement entered into on May 4, 2022 by the Company, LifeStance Health Holdings, Inc., Lynnwood Intermediate Holdings, Inc., Capital One, National Association, and each lender party thereto (the "2022 Credit Agreement"). We had cash and cash equivalents of $79.6 million and $108.6 million as of June 30, 2023 and December 31, 2022.

We believe that our existing cash and cash equivalents will be sufficient to fund our operating and capital needs for at least the next 12 months from the issuance date of our June 30, 2023 unaudited financial statements, without any additional financing. Our assessment of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement and involves risks and uncertainties. Our actual results could vary because of, and our future capital requirements will depend on many factors, including our growth rate, the timing and extent of spending to acquire new centers and expand into new markets and the expansion of marketing activities. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies. We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, or if we cannot expand our operations or otherwise capitalize on our business opportunities because we lack sufficient capital, our business, results of operations and financial condition would be adversely affected.

Our future obligations primarily consist of our debt and lease obligations. We expect our cash generation from operations and future ability to refinance or secure additional financing facilities to be sufficient to repay our outstanding debt obligations and lease payment obligations. As of December 31, 2022 and June 30, 2023, there was an aggregate principal amount of $234.0 million and $257.8 million outstanding under the 2022 Credit Agreement, respectively. As of June 30, 2023, our non-cancellable future minimum operating lease payments totaled $296.3 million.

Debt

On May 4, 2022, LifeStance Health Holdings, Inc., one of our subsidiaries, entered into the 2022 Credit Agreement. The 2022 Credit Agreement establishes commitments in respect of a senior secured term loan facility of $200.0 million (the “Term Loan Facility”), a senior secured revolving loan facility of up to $50.0 million (the “Revolving Facility”) and a senior secured delayed draw term loan facility of up to $100.0 million (the “Delayed Draw Term Loan Facility”).

The loans under the Term Loan Facility and the Delayed Draw Term Loan Facility bear interest at a rate per annum equal to (x) adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus an applicable margin of 4.50% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus 1.00%) plus an applicable margin of 3.50%. The loans under the Revolving Facility bear interest at a rate per annum equal to (x) adjusted term SOFR plus an applicable margin of 3.25% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR plus 1.00%) plus an applicable margin of 2.25%.

The 2022 Credit Agreement also contains a maximum first lien net leverage ratio financial maintenance covenant that requires the First Lien Net Leverage Ratio as of the last day of each fiscal quarter to not exceed 8.50:1.00. First Lien Net Leverage Ratio means the ratio of (a) Consolidated First Lien Secured Debt outstanding as of the last day of the test period, minus the Unrestricted Cash Amount on such last day, to (b) Consolidated EBITDA for such test period, in each case on a pro forma basis. As of June 30, 2023, we were in compliance with all financial covenants under the 2022 Credit Agreement.

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Cash Flows

The following table summarizes our cash flows for the periods indicated:

	Six Months Ended June 30,
	2023			2022
(in thousands)
Net cash (used in) provided by operating activities	$	(8,324	)	$	11,141
Net cash used in investing activities		(39,130	)		(88,893	)
Net cash provided by financing activities		18,438			26,409
Net decrease in cash and cash equivalents	$	(29,016	)	$	(51,343	)
Cash and cash equivalents, beginning of period		108,621			148,029
Cash and cash equivalents, end of period	$	79,605		$	96,686

Cash Flows (Used In) Provided By Operating Activities

During the six months ended June 30, 2023, operating activities used $8.3 million of cash, primarily impacted by our $79.7 million net loss and $117.0 million in non-cash charges. This was partially offset by changes in our operating assets and liabilities of $45.6 million. During the six months ended June 30, 2022, operating activities provided $11.1 million of cash, primarily impacted by our $131.1 million net loss and $154.5 million in non-cash charges. This was partially offset by changes in our operating assets and liabilities of $12.3 million.

Cash Flows Used In Investing Activities

During the six months ended June 30, 2023, investing activities used $39.1 million of cash, primarily resulting from our business acquisitions totaling $19.8 million and purchases of property and equipment of $19.3 million. During the six months ended June 30, 2022, investing activities used $88.9 million of cash, primarily resulting from our business acquisitions of $35.1 million and purchases of property and equipment of $53.8 million.

Cash Flows Provided By Financing Activities

During the six months ended June 30, 2023, financing activities provided $18.4 million of cash, resulting primarily from borrowings of $25.0 million under the 2022 Credit Agreement, partially offset by payments of loan obligations of $1.2 million, payments of debt issue costs of $0.2 million and payments of contingent consideration of $5.2 million. During the six months ended June 30, 2022, financing activities provided $26.4 million of cash, resulting primarily from borrowings of $228.0 million under the 2022 Credit Agreement, partially offset by payments of loan obligations of $181.2 million, a prepayment for the debt paydown under the May 2020 Credit Agreement of $1.6 million, payments of debt issue costs of $7.2 million and payments of contingent consideration of $11.1 million.

Critical Accounting Estimates

Our consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements included elsewhere in this Quarterly Report include the results of LifeStance Health Group, Inc., its wholly-owned subsidiaries and VIEs consolidated by LifeStance Health Group, Inc. in which LifeStance Health Group, Inc. has an interest and is the primary beneficiary for the period ended June 30, 2023. Preparation of the consolidated financial statements requires our management to make judgments, estimates and assumptions that impact the reported amount of total revenue and expenses, assets and liabilities and the disclosure of contingent assets and liabilities. We consider an accounting estimate to be critical when (1) the estimate made in accordance with GAAP is complex in nature or involves a significant level of estimation uncertainty and (2) the use of different judgments, estimates and assumptions have had or are reasonably likely to have a material impact on the financial condition or results of operations in our consolidated financial statements. Actual results could differ materially from those estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected. For a description of our policies regarding our critical accounting estimates, see “Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in our critical accounting estimates or methodologies to our consolidated financial statements.

Recently Adopted and Issued Accounting Pronouncements

Recently issued and adopted accounting pronouncements are described in Note 2 to our unaudited consolidated financial statements.

Emerging Growth Company Status

We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting

27

standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our unaudited consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. As of June 30, 2023, the market value of our common stock held by non-affiliates exceeded $700 million. As a result, we will become a large accelerated filer beginning January 1, 2024 for future filings and will no longer be an emerging growth company. Therefore, as of that date, we will be required to comply with new or revised accounting standards as of the effective dates applicable to public companies that are not emerging growth companies.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk represents the risk of loss that may impact our financial condition due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of exposure due to potential changes in inflation or interest rates. We do not hold financial instruments for trading purposes.

Interest Rate Risk

Our primary market risk exposure is changing prime rate-based interest rates. Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic factors and other factors beyond our control.

As of June 30, 2023, we had an aggregate principal amount of $257.8 million outstanding under our credit facilities. In the current economic environment, we manage interest expense using a combination of variable-rate debt and a fixed-interest-rate swap. In August 2022, we entered into a hedge transaction (interest rate swap) using a derivative financial instrument for the purpose of hedging our exposure to interest rate risks, which the contractual terms of the hedged instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. The objective of entering into the interest rate swap is to eliminate the variability of cash flows in the Secured Overnight Financing Rate interest payments associated with variable-rate loan over the life of the loan under our credit facilities.

We do not believe that an increase or decrease in interest rates of 100 basis points would have a material effect on our business, financial condition or results of operations.

Inflation Risk

Based on our analysis of the periods presented, we believe that inflation has not had a material effect on our operating results. There can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, as a result of the material weaknesses in internal control over financial reporting described below, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2023 due to the material weaknesses described below.

Previously Reported Material Weaknesses

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis. As previously reported in the Annual Report on Form 10-K for the year ended December 31, 2022, in connection with the preparation of our consolidated financial statements as of and for the year ended December 31, 2019, we identified material weaknesses in our internal control over financial reporting, which continue to exist as of June 30, 2023. The material weaknesses we identified were as follows:

We did not design and maintain an effective control environment commensurate with our financial reporting requirements due to an insufficient complement of resources in the accounting/finance and IT functions, with an appropriate level of knowledge, experience and training. This material weakness contributed to the following additional material weaknesses:

•We did not maintain formal accounting policies and procedures, and did not design and maintain controls related to significant accounts and disclosures to achieve complete, accurate and timely financial accounting, reporting and disclosures, including controls over account reconciliations, segregation of duties and the preparation and review of journal entries.

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These material weaknesses resulted in material misstatements related to the identification and valuation of intangible assets acquired in business combinations that impacted the classification of intangible assets and goodwill, related impacts to amortization and income tax expense, and the restatement of our previously issued annual consolidated financial statements as of and for the years ended December 31, 2019 and 2018 with respect to such intangibles assets acquired in business combinations. Additionally, these material weaknesses could result in a misstatement of substantially all of the financial statement accounts and disclosures that would result in a material misstatement to our annual or interim consolidated financial statements that would not be prevented or detected.

•We did not design and maintain effective controls over IT general controls for information systems that are relevant to the preparation of our consolidated financial statements. Specifically, we did not design and maintain: (i) program change management controls for financial systems to ensure that information technology program and data changes affecting financial IT applications and underlying accounting records are identified, tested, authorized and implemented appropriately; (ii) user access controls to ensure appropriate segregation of duties and that adequately restrict user and privileged access to financial applications, programs, and data to appropriate Company personnel; (iii) computer operations controls to ensure that critical batch jobs are monitored and data backups are authorized and monitored; and (iv) testing and approval controls for program development to ensure that new software development is aligned with business and IT requirements.

These IT deficiencies did not result in a material misstatement to our consolidated financial statements; however, the deficiencies, when aggregated, could impact maintaining effective segregation of duties, as well as the effectiveness of IT-dependent controls (such as automated controls that address the risk of material misstatement to one or more assertions, along with the IT controls and underlying data that support the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all financial statement accounts and disclosures that would not be prevented or detected. Accordingly, we have determined these deficiencies in the aggregate constitute a material weakness.

Remediation Plan for Material Weaknesses

We are in the process of designing and implementing measures designed to improve our internal control over financial reporting and remediate the control deficiencies which led to the material weaknesses. As of June 30, 2023, our remediation measures are ongoing and include the following:

•hired additional accounting and IT personnel to enhance our technical reporting, transactional accounting, and IT capabilities. We designed and implemented controls to support training, development, and technical research capabilities for those personnel, along with development and implementation of policies and procedures to support the external financial reporting functions. We continue to evaluate our staffing needs and plan to hire additional personnel as necessary to support our operations;

•performed detailed risk assessments for significant financial processes to identify, design, and implement control activities related to internal control over financial reporting;

•developed and implemented controls related to the formalization of our accounting policies and procedures and financial reporting;

•development and implementation of controls related to significant accounts and disclosures to achieve complete, accurate and timely financial accounting, reporting and disclosures, including controls over account reconciliations, segregation of duties and the preparation and review of journal entries;

•developed and implemented IT security and governance controls to address program change of internally and externally developed systems and computer operations associated with information systems impacting the preparation of our consolidated financial statements;

•developed and implemented controls related to the periodic monitoring and review of user access rights, the identification and risk ranking of segregation of duties conflicts, and, where it is determined there is a need for an individual to having conflicting access, a periodic review of the underlying activities is performed by an independent person who does not have such conflicting access;

•developed and implemented controls related to computer operations surrounding critical batch jobs and data backups; and

•development and implementation of program change management controls, including new or material modifications, related to testing, authorization and implementation of program and data changes affecting financial IT applications and accounting records.

We have made progress towards designing and implementing the plan to remediate the material weaknesses and will continue to review, revise, and improve the design and implementation of our internal controls as appropriate. Although we have made

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enhancements to our control procedures, these material weaknesses will not be considered remediated until our controls are operational for a sufficient period of time, tested, and management concludes that these controls are operating effectively.

We intend to evaluate current and projected resource needs on a regular basis and hire additional qualified resources as needed. Our ability to maintain qualified and adequate resources to support our business and our projected growth will be a critical component of our internal control environment.

Changes in Internal Control over Financial Reporting

We are taking actions to remediate the material weaknesses relating to our internal control over financial reporting. There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Disclosure Controls and Procedures

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

For a discussion of certain legal proceedings in which we are involved, please read Note 12, Commitments and Contingencies, to our unaudited consolidated financial statements in this report, which is incorporated into this item by reference.

Item 1A. Risk Factors.

There have been no material changes to our risk factors as previously disclosed under Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, except as follows:

We will no longer qualify as an “emerging growth company” after December 31, 2023, and, as a result, we will have to comply with increased disclosure and compliance requirements.

We are currently an “emerging growth company” as defined in the JOBS Act. However, because the market value of our common stock held by non-affiliates exceeded $700 million as of June 30, 2023, we will no longer qualify as an “emerging growth company” as of December 31, 2023 and will be a large accelerated filer beginning January 1, 2024 for future filings.

As a large accelerated filer, we will be subject to certain disclosure and compliance requirements that apply to other public companies but that did not previously apply to us due to our status as an emerging growth company. These requirements include, but are not limited to:

•the requirement that our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act of 2002;

•compliance with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements;

•the requirement that we provide more detailed disclosures regarding executive compensation; and

•the requirement that we hold a non-binding advisory vote on executive compensation and obtain stockholder approval of any golden parachute payments not previously approved.

We expect that the loss of emerging growth company status and compliance with the additional requirements of being a large accelerated filer will increase our legal, accounting and financial compliance costs and costs associated with investor relations activities, and cause management and other personnel to divert attention from operational and other business matters to devote substantial time to public company reporting requirements. In addition, if we are not able to comply with changing requirements in a timely manner, the market price of our stock could decline and we could be subject to sanctions or investigations by the stock exchange on which our common stock is listed, the SEC or other regulatory authorities, which would require additional financial and management resources.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During our fiscal quarter ended June 30, 2023, none of our directors or officers (as defined in Rule 16a-1(g) under the Securities Exchange Act of 1934, as amended) entered into, modified (as to amount, price or timing of trades) or terminated (i) contracts, instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information or (ii) non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).

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Item 6. Exhibits.

		Description of Exhibit Incorporated Herein by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed Herewith
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1*	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

+ Indicates a management contract or compensatory plan, contract or arrangement.

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned thereunto duly authorized.

	LifeStance Health Group, Inc.
Date: August 9, 2023	By:	/s/ David Bourdon
		David Bourdon
		Chief Financial Officer and Treasurer (principal financial and accounting officer)

33

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kenneth Burdick, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of LifeStance Health Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 9, 2023	By:	/s/ Kenneth Burdick
		Kenneth Burdick
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Bourdon, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of LifeStance Health Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 9, 2023	By:	/s/ David Bourdon
		David Bourdon
		Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of LifeStance Health Group, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kenneth Burdick, Chief Executive Officer of LifeStance Health Group, Inc., hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2023	By:	/s/ Kenneth Burdick
		Kenneth Burdick
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of LifeStance Health Group, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David Bourdon, Chief Financial Officer and Treasurer of LifeStance Health Group, Inc., hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2023	By:	/s/ David Bourdon
		David Bourdon
		Chief Financial Officer and Treasurer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Entity Registrant Name	LifeStance Health Group, Inc.
Entity Central Index Key	0001845257
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	LFST
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		378,005,241
Entity File Number	001-40478
Entity Tax Identification Number	86-1832801
Entity Address, Address Line Two	Suite 6000
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	4800 N. Scottsdale Road
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85251
City Area Code	602
Local Phone Number	767-2100

XML

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 79,605	$ 108,621
Patient accounts receivable, net	121,796	100,868
Prepaid expenses and other current assets	36,480	23,734
Total current assets	237,881	233,223
NONCURRENT ASSETS
Property and equipment, net	193,144	194,189
Right-of-use assets	191,381	199,431
Intangible assets, net	243,788	263,294
Goodwill	1,293,502	1,272,939
Other noncurrent assets	11,221	10,795
Total noncurrent assets	1,933,036	1,940,648
Total assets	2,170,917	2,173,871
CURRENT LIABILITIES
Accounts payable	8,044	12,285
Accrued payroll expenses	81,144	75,650
Other accrued expenses	34,348	30,428
Current portion of contingent consideration	10,537	15,876
Operating lease liabilities, current	43,446	38,824
Other current liabilities	3,335	2,936
Total current liabilities	180,854	175,999
NONCURRENT LIABILITIES
Long-term debt, net	248,718	225,079
Operating lease liabilities, noncurrent	205,586	212,586
Deferred tax liability, net	38,324	38,701
Other noncurrent liabilities	2,559	2,783
Total noncurrent liabilities	495,187	479,149
Total liabilities	676,041	655,148
COMMITMENTS AND CONTINGENCIES (see Note 12)
STOCKHOLDERS' EQUITY
Preferred stock - par value $0.01 per share; 25,000 shares authorized as of June 30, 2023 and December 31, 2022; 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022	0	0
Common stock - par value $0.01 per share; 800,000 shares authorized as of June 30, 2023 and December 31, 2022; 378,005 and 375,964 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	3,782	3,761
Additional paid-in capital	2,141,247	2,084,324
Accumulated other comprehensive income	4,151	3,274
Accumulated deficit	(654,304)	(572,636)
Total stockholders' equity	1,494,876	1,518,723
Total liabilities and stockholders' equity	$ 2,170,917	$ 2,173,871

XML

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	800,000,000	800,000,000
Common Stock, Shares, Issued	378,005,000	375,964,000
Common Stock, Shares, Outstanding	378,005,000	375,964,000

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
TOTAL REVENUE	$ 259,578	$ 209,527	$ 512,167	$ 412,622
OPERATING EXPENSES
Center costs, excluding depreciation and amortization shown separately below	186,607	149,697	369,594	298,590
General and administrative expenses	101,854	103,559	186,480	206,928
Depreciation and amortization	19,530	16,743	38,599	32,427
Total operating expenses	307,991	269,999	594,673	537,945
LOSS FROM OPERATIONS	(48,413)	(60,472)	(82,506)	(125,323)
OTHER INCOME (EXPENSE)
Gain (loss) on remeasurement of contingent consideration	1,539	(180)	2,576	(614)
Transaction costs	(3)	(19)	(89)	(297)
Interest expense, net	(5,119)	(7,133)	(10,211)	(10,574)
Other expense	(24)	0	(69)	0
Total other expense	(3,607)	(7,332)	(7,793)	(11,485)
LOSS BEFORE INCOME TAXES	(52,020)	(67,804)	(90,299)	(136,808)
INCOME TAX BENEFIT (PROVISION)	6,542	(923)	10,579	5,753
NET LOSS	$ (45,478)	$ (68,727)	$ (79,720)	$ (131,055)
NET LOSS PER SHARE, BASIC	$ (0.13)	$ (0.19)	$ (0.22)	$ (0.37)
NET LOSS PER SHARE, DILUTED	$ (0.13)	$ (0.19)	$ (0.22)	$ (0.37)
Weighted-average shares, basic net loss per share	363,161	353,729	362,039	352,297
Weighted-average shares, diluted net loss per share	363,161	353,729	362,039	352,297
Net Income (Loss)	$ (45,478)	$ (68,727)	$ (79,720)	$ (131,055)
OTHER COMPREHENSIVE INCOME
Unrealized gains on cash flow hedge, net of tax	2,147	0	877	0
COMPREHENSIVE LOSS	$ (43,331)	$ (68,727)	$ (78,843)	$ (131,055)

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2021	$ 1,545,028	$ 3,743	$ 1,898,357		$ (357,072)
Shares, Outstanding at Dec. 31, 2021		374,255
Net Income (Loss)	(131,055)				(131,055)
Issuance of common stock upon vesting of restricted stock units	(37)	$ 20	(57)
Issuance of common stock upon vesting of restricted stock units, Shares		1,954
Forfeitures, value	(185)		(185)
Forfeitures, shares		(28)
Stock-based compensation expense	117,550		117,550
Balance at Jun. 30, 2022	1,531,301	$ 3,763	2,015,665		(488,127)
Shares, Outstanding at Jun. 30, 2022		376,181
Balance at Mar. 31, 2022	1,542,518	$ 3,744	1,958,174		(419,400)
Shares, Outstanding at Mar. 31, 2022		374,323
Net Income (Loss)	(68,727)				(68,727)
Issuance of common stock upon vesting of restricted stock units		$ 19	(19)
Issuance of common stock upon vesting of restricted stock units, Shares		1,858
Stock-based compensation expense	57,510		57,510
Balance at Jun. 30, 2022	1,531,301	$ 3,763	2,015,665		(488,127)
Shares, Outstanding at Jun. 30, 2022		376,181
Balance at Dec. 31, 2022	1,518,723	$ 3,761	2,084,324	$ 3,274	(572,636)
Shares, Outstanding at Dec. 31, 2022		375,964
Net Income (Loss)	(79,720)				(79,720)
Issuance of common stock upon vesting of restricted stock units		$ 40	(40)
Issuance of common stock upon vesting of restricted stock units, Shares		4,006
Forfeitures, value	(3,399)	$ (19)	(3,380)
Forfeitures, shares		(1,965)
Other comprehensive income	877			877
Adoption of ASU 2016-13	(1,948)				(1,948)
Stock-based compensation expense	60,343		60,343
Balance at Jun. 30, 2023	1,494,876	$ 3,782	2,141,247	4,151	(654,304)
Shares, Outstanding at Jun. 30, 2023		378,005
Balance at Mar. 31, 2023	1,505,129	$ 3,767	2,108,184	2,004	(608,826)
Shares, Outstanding at Mar. 31, 2023		376,537
Net Income (Loss)	(45,478)				(45,478)
Issuance of common stock upon vesting of restricted stock units		$ 23	(23)
Issuance of common stock upon vesting of restricted stock units, Shares		2,295
Forfeitures, value	(34)	$ (8)	(26)	0	0
Forfeitures, shares		(827)
Other comprehensive income	2,147			2,147	0
Stock-based compensation expense	33,112		33,112	0	0
Balance at Jun. 30, 2023	$ 1,494,876	$ 3,782	$ 2,141,247	$ 4,151	$ (654,304)
Shares, Outstanding at Jun. 30, 2023		378,005

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (79,720)	$ (131,055)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	38,599	32,427
Non-cash operating lease costs	20,263	0
Stock-based compensation	56,944	117,365
Loss on debt extinguishment	0	3,380
Amortization of discount and debt issue costs	1,076	748
(Gain) loss on remeasurement of contingent consideration	(2,576)	614
Other, net	2,708	0
Change in operating assets and liabilities, net of businesses acquired:
Patient accounts receivable, net	(20,558)	(21,900)
Prepaid expenses and other current assets	(15,176)	(5,351)
Accounts payable	(5,395)	1,731
Accrued payroll expenses	5,158	(289)
Operating lease liabilities	(16,929)	0
Other accrued expenses	7,282	13,471
Net cash (used in) provided by operating activities	(8,324)	11,141
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(19,310)	(53,775)
Acquisitions of businesses, net of cash acquired	(19,820)	(35,118)
Net cash used in investing activities	(39,130)	(88,893)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of discount	25,000	228,000
Payments of debt issue costs	(188)	(7,184)
Payments of long-term debt	(1,173)	(181,230)
Prepayment for debt paydown	0	(1,609)
Payments of contingent consideration	(5,201)	(11,090)
Taxes related to net share settlement of equity awards	0	(478)
Net cash provided by financing activities	18,438	26,409
NET DECREASE IN CASH AND CASH EQUIVALENTS	(29,016)	(51,343)
Cash and Cash Equivalents - Beginning of period	108,621	148,029
CASH AND CASH EQUIVALENTS – END OF PERIOD	79,605	96,686
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest, net	9,830	4,927
Cash paid for taxes, net of refunds	313	860
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES
Equipment financed through finance leases	0	256
Contingent consideration incurred in acquisitions of businesses	1,985	5,683
Acquisition of property and equipment included in liabilities	$ 6,238	$ 13,055

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (45,478)	$ (68,727)	$ (79,720)	$ (131,055)

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Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Nature of the Business

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of the Business

NOTE 1 NATURE OF THE BUSINESS

Description of Business

LifeStance Health Group, Inc. ("LifeStance" or the "Company") operates as a provider of outpatient mental health services, spanning psychiatric evaluations and treatment, psychological and neuropsychological testing, and individual, family and group therapy.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company's significant accounting policies are discussed in Note 2 "Summary of Significant Accounting Policies" in Item 15 of its Annual Report on Form 10-K for the year ended December 31, 2022. During the six months ended June 30, 2023, there have been no significant changes to these policies other than the addition to the cash and cash equivalents policy further described below.

Basis of Presentation and Principles of Consolidation

The Company has prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC regarding interim financial reporting, which include the accounts of LifeStance, its wholly-owned subsidiaries and variable interest entities ("VIEs") in which LifeStance has an interest and is the primary beneficiary. Pursuant to these rules and regulations, the Company has omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly state its consolidated financial condition, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s audited financial statements for the year ended December 31, 2022 in the Company's Annual Report on Form 10-K.

Use of Accounting Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Variable Interest Entities

The Company evaluates its ownership, contractual and other interests in entities to determine if it has any variable interest in a VIE. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available information. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. The Company performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change.

The Company acquires and operates certain care centers which are deemed to be Friendly-Physician Entities (“FPEs”). As part of an FPE acquisition, the Company acquires 100% of the non-medical assets, however due to legal requirements the physician-owners must retain 100% of the equity interest. The Company’s agreements with FPEs generally consist of both a Management Service Agreement, which provides for various administrative and management services to be provided by the Company to the FPE, and Stock Transfer Restriction (“STR”) agreements with the physician-owners of the FPEs, which provide for the transition of ownership interests of the FPEs under certain conditions. The outstanding voting equity instruments of the FPEs are owned by the nominee shareholders appointed by the Company under the terms of the STR agreements. The Company has the right to receive income as an ongoing management fee, which effectively absorbs all of the residual interests and has also provided financial support through loans to the FPEs. The Company has exclusive responsibility for the provision of all nonmedical services including facilities, technology and intellectual property required for the day-to-day operation and management of each of the FPEs, and makes recommendations to the FPEs in establishing the guidelines for the employment and compensation of the physicians and other employees of the FPEs. In addition, the STR agreements provide that the Company has the right to designate an appropriately licensed person(s) to purchase the equity interest of the FPE for a nominal amount in the event of a succession event at the Company’s discretion. Based on the

provisions of these agreements, the Company determined that the FPEs are VIEs due to the equity holder having insufficient capital at risk, and the Company has a variable interest in the FPEs.

The contractual arrangements described above allow the Company to direct the activities that most significantly affect the economic performance of the FPEs. Accordingly, the Company is the primary beneficiary of the FPEs and consolidates the FPEs under the VIE model. Furthermore, as a direct result of nominal initial equity contributions by the physicians, the financial support the Company provides to the FPEs (e.g., loans) and the provisions of the contractual arrangements and nominee shareholder succession arrangements described above, the interests held by noncontrolling interest holders lack economic substance and do not provide them with the ability to participate in the residual profits or losses generated by the FPEs. Therefore, all income and expenses recognized by the FPEs are allocated to the Company. The Company does not hold interests in any VIEs for which the Company is not deemed to be the primary beneficiary.

As noted previously, the Company acquires 100% of the non-medical assets of the VIEs. The aggregate carrying values of the VIEs total assets and total liabilities not purchased by the Company but included on the consolidated balance sheets were not material at June 30, 2023 and December 31, 2022.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less at the time of purchase. Cash and cash equivalents consist of demand deposits held with financial institutions and investments in money market funds.

Emerging Growth Company Status

The Company is currently an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the Company's unaudited consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

As of June 30, 2023, the market value of the Company's common stock held by non-affiliates exceeded $700 million. As a result, the Company will become a large accelerated filer beginning January 1, 2024 for future filings and will no longer be an emerging growth company. As a large accelerated filer, the Company will be subject to certain disclosure and compliance requirements that apply to other public companies but did not previously apply to the Company due to its status as an emerging growth company. These requirements include, but are not limited to: the requirement that the Company's independent registered public accounting firm attest to the effectiveness of the Company's internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; compliance with any requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors' report providing additional information about the audit and the financial statements; the requirement that the Company provide more detailed disclosures regarding executive compensation; and, the requirement that the Company hold a non-binding advisory vote on executive compensation and obtain shareholder approval of any golden parachute payments not previously approved.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326)-Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The estimate of expected credit losses requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The CECL model is expected to result in more timely recognition of credit losses. The Company adopted the standard on January 1, 2023 using the modified retrospective adoption method and did not have a material impact to the consolidated financial statements. The Company makes estimates of expected credit losses based on a combination of factors, including historical losses adjusted for current market conditions, the Company's customers' financial condition, delinquency trends, aging behaviors of receivables and credit and liquidity indicators, and future market and economic conditions and regularly reviews the adequacy of the allowance for credit losses.

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Total Revenue

6 Months Ended

Jun. 30, 2023

Revenues [Abstract]

Total Revenue

NOTE 3 TOTAL REVENUE

The Company’s total revenue is dependent on a series of contracts with third-party payors, which is typical for providers in the health care industry. The Company has determined that the nature, amount, timing and uncertainty of revenue and cash flows are affected by the payor mix with third-party payors, which have different reimbursement rates.

The payor mix of fee-for-service revenue from patients and third-party payors consists of the following:

	Three Months Ended June 30,										Six Months Ended June 30,
	2023					2022					2023					2022
	Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue
Commercial	$	235,896		91	%	$	189,061		91	%	$	464,815		91	%	$	372,670		91	%
Government		10,999		4	%		9,063		4	%		21,950		4	%		17,896		4	%
Self-pay		10,384		4	%		8,723		4	%		20,131		4	%		17,098		4	%
Total patient service    revenue		257,279		99	%		206,847		99	%		506,896		99	%		407,664		99	%
Nonpatient service    revenue		2,299		1	%		2,680		1	%		5,271		1	%		4,958		1	%
Total	$	259,578		100	%	$	209,527		100	%	$	512,167		100	%	$	412,622		100	%

Among the commercial payors, the table below represents insurance companies that individually represented 10% or more of revenue:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Payor A		19	%		19	%		19	%		19	%
Payor B		13	%		14	%		13	%		14	%

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Property and Equipment, Net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

NOTE 4 PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following:

	June 30, 2023			December 31, 2022
Leasehold improvements	$	162,494		$	148,249
Computers and peripherals		27,701			26,650
Internal-use software		8,352			7,894
Furniture, fixtures and equipment		40,709			36,437
Medical equipment		950			950
Construction in process		11,285			16,892
Total	$	251,491		$	237,072
Less: Accumulated depreciation		(58,347	)		(42,883	)
Total property and equipment, net	$	193,144		$	194,189

Depreciation expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Depreciation expense	$	9,354	$	6,750	$	18,250	$	12,477

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Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

NOTE 5 LEASES

The Company adopted ASC 842 on January 1, 2022 utilizing the private company effective date which did not require adoption of the new standard for any interim periods of the fiscal year in which it was adopted. As of December 31, 2022 and June 30, 2023 and for the three and six months ended June 30, 2023, the Company accounts for its leases in accordance with ASC 842. For the comparative interim periods prior to 2023, the Company prepared its quarterly unaudited consolidated financial statements in accordance with ASC 840, which is a basis different from that of the current year. Accordingly, for the comparative three and six months ended June 30, 2022 leases are presented in accordance with ASC 840.

The Company leases its office facilities and office equipment which are accounted for as operating leases. Some leases contain clauses for renewal at the Company's option with renewal terms that generally extend the lease term from one to seven years.

The components of lease expense for the Company's operating leases in its unaudited consolidated statements of operations and comprehensive loss were as follows:

	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Operating lease costs	$	14,264	$	28,572

Variable lease costs and short-term lease costs were not material.

The weighted-average remaining lease term and discount rate for operating lease liabilities included in the consolidated balance sheets are as follows:

	June 30, 2023			December 31, 2022
Weighted-average remaining lease term (in years)		5.0			5.3
Weighted-average discount rate		6.77	%		6.47	%

Supplemental cash flow information related to operating leases was as follows:

	Six Months Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	30,995
Noncash lease activity
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	14,554

The future minimum lease payments under noncancellable operating leases as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	25,987
2024		64,960
2025		61,345
2026		53,713
2027		40,457
Thereafter		49,810
Total lease payments	$	296,272
Less: imputed interest		(47,240	)
Total lease liabilities	$	249,032

The Company incurred $205 and $417 in related-party lease expense in its unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023, respectively. The Company recognized the following amounts in its unaudited consolidated balance sheets in connection with leases with related parties:

	June 30, 2023		December 31, 2022
Right-of-use assets	$	2,770	$	5,058
Operating lease liabilities, current		549		1,324
Operating lease liabilities, noncurrent		2,315		3,902

Total rent expense amounted to as follows in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Related-party rent expense	$	391	$	778
Third-party rent expense		12,137		23,296
Total lease cost	$	12,528	$	24,074

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 6 GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table summarizes changes in the carrying amount of goodwill:

	Amount
Balance as of December 31, 2022	$	1,272,939
Business acquisitions (Note 7)		20,733
Measurement period adjustments		(170	)
Balance as of June 30, 2023	$	1,293,502

Intangible Assets

Intangible assets consist of the following:

June 30, 2023	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,694	$	(20,358	)	$	16,336		5.0
LifeStance trade names		235,500		(32,791	)		202,709		22.5
Non-competition agreements		94,535		(69,792	)		24,743		4.2
Total intangible assets	$	366,729	$	(122,941	)	$	243,788

December 31, 2022	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,259	$	(16,688	)	$	19,571		5.0
LifeStance trade names		235,500		(27,557	)		207,943		22.5
Non-competition agreements		94,127		(58,347	)		35,780		4.2
Total intangible assets	$	365,886	$	(102,592	)	$	263,294

Gross carrying amount is based on the fair value of the intangible assets determined at the acquisition date. Total intangible asset amortization expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amortization expense	$	10,176	$	9,993	$	20,349	$	19,950

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Business Combinations

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Business Combinations

NOTE 7 BUSINESS COMBINATIONS

During the three months ended June 30, 2022 and six months ended June 30, 2023 and 2022, the Company completed the acquisitions of 4, 3 and 6 outpatient mental health practices, respectively. There were no completed acquisitions during the three months ended June 30, 2023. The Company accounted for the acquisitions as business combinations using the acquisition method of accounting. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the respective acquisition dates.

Total consideration transferred for these acquisitions consisted of the following:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Cash consideration	$	12,600	$	20,000	$	35,925
Contingent consideration, at initial fair value		3,213		1,985		5,683
Total consideration transferred	$	15,813	$	21,985	$	41,608

The results of the acquired businesses have been included in the Company’s consolidated financial statements beginning as of their acquisition dates. It is impracticable to provide historical supplemental pro forma financial information along with revenue and earnings subsequent to the acquisition dates for acquisitions during the period due to a variety of factors, including access to historical information and the operations of acquirees being integrated within the Company shortly after closing and not operating as discrete entities within the Company’s organizational structure.

Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
Allocation of Purchase Price	June 30, 2022		2023		2022
Cash	$	430	$	181	$	851
Patient accounts receivable		707		372		1,193
Prepaid expenses and other current assets		166		138		230
Property and equipment		19		221		53
Right-of-use assets		—		368		—
Other noncurrent assets		53		22		56
Intangible assets		901		843		1,683
Goodwill		14,526		20,733		39,227
Total assets acquired		16,802		22,878		43,293
Total liabilities assumed		989		893		1,685
Fair value of net assets	$	15,813	$	21,985	$	41,608

The majority of the tangible assets acquired and liabilities assumed were recorded at their carrying values as of the respective dates of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. The Company developed estimates for the expected future cash flows and discount rates used in the present value calculations.

The following table summarizes the fair values of acquired intangible assets as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Regional trade names (1)	$	555	$	435	$	897
Non-competition agreements (2)		346		408		786
Total	$	901	$	843	$	1,683

(1)Useful lives for regional trade names are 5 years.

(2)Useful lives for non-competition agreements are 5 years.

Contingent Consideration

Under the provisions of the acquisition agreements, the Company may pay additional cash consideration in the form of earnouts, contingent upon the acquirees achieving certain performance and operational targets (see Note 8).

The following table summarizes the maximum contingent consideration based on the acquisition agreements:

	Three Months Ended		Six Months Ended June 30,
Contingent consideration	June 30, 2022		2023		2022
Maximum contingent consideration based on acquisition    agreements	$	4,200	$	2,650	$	7,200

Goodwill

Goodwill is primarily attributable to the assembled workforce, customer and payor relationships and anticipated synergies and economies of scale expected from the integration of the businesses. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved as a result of the acquisition. All goodwill is deductible for tax purposes.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 8 FAIR VALUE MEASUREMENTS

Contingent Consideration

The Company measures its contingent consideration liability at fair value on a recurring basis using Level 3 inputs. The Company estimates the fair value of the contingent consideration liability based on the likelihood and timing of the contingent earn-out

payments. The following is the summary of the significant assumptions used for the fair value measurement of the contingent consideration liability as of June 30, 2023 and December 31, 2022.

Valuation Technique	Range of Significant Assumptions
		June 30, 2023	December 31, 2022
Probability-weighted analysis	Probability	50% - 100%	50% - 100%
based earn-outs	Discount rate	9.0%	8.0%

As of June 30, 2023 and December 31, 2022, the Company adjusted the fair value of the contingent consideration liability due to remeasurement at the reporting date. The noncurrent portion of the contingent consideration liability is included within other noncurrent liabilities on the unaudited consolidated balance sheets.

Hedging Activities

The Company uses derivative financial instruments, including an interest rate swap, for hedging and non-trading purposes to manage its exposure to changes in interest rates. The Company entered into a hedge transaction (interest rate swap) using a derivative financial instrument for the purpose of hedging the Company’s exposure to interest rate risks, which the contractual terms of the hedged instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. The objective of entering into the interest rate swap is to eliminate the variability of cash flows in the Secured Overnight Financing Rate ("SOFR") interest payments associated with the variable-rate loan over the life of the loan. In August 2022, the Company entered into an interest rate swap agreement to pay a fixed rate of 3.24% on a total notional value of $189,000 of debt. As a result of the interest rate swap, 94.5% of the term loan previously exposed to interest rate risk from changes in SOFR is now hedged against the interest rate swap at a fixed rate. The interest rate swap matures on September 30, 2025. As of June 30, 2023, the notional value was $187,583. As changes in interest rates impact the future cash flow of interest payments, the hedge provides a synthetic offset to interest rate movements.

The Company used the income approach to value the derivative for the interest rate swap using observable market data for all significant inputs and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. This derivative instrument (interest rate swap) is designated and qualifies as a cash flow hedge, with the entire gain or loss on the derivative reported as a component of other comprehensive income. Amounts recorded in accumulated other comprehensive income are released to earnings in the same period that the hedged transaction impacts consolidated earnings within interest expense, net. The cash flows from the derivative treated as a cash flow hedge is classified in the Company’s consolidated statements of cash flows in the same category as the item being hedged.

For the three and six months ended June 30, 2023, the Company included an immaterial gain on the hedged instrument (variable-rate borrowings) in the same line item (interest expense, net) as the offsetting gain on the related interest rate swap in the unaudited consolidated statements of operations and comprehensive loss.

The following table summarizes the location of the interest rate swap in the unaudited consolidated balance sheets:

	Consolidated balance sheets location	June 30, 2023		December 31, 2022
Interest rate swap	Other noncurrent assets	$	5,611	$	4,426

The amount of estimated cash flow hedge unrealized gains and losses that are expected to be reclassified to earnings in the next twelve months is not material.

Fair Value Measured on a Recurring Basis

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:

	June 30, 2023			December 31, 2022
Assets Measured at Fair Value
Money market funds	$	57,021		$	—
Level 1	$	57,021		$	—
Interest rate swap asset	$	5,611		$	4,426
Level 2	$	5,611		$	4,426
Total assets measured at fair value	$	62,632		$	4,426
Liabilities Measured at Fair Value
Contingent consideration liability:
Beginning balance	$	17,824		$	17,430
Additions related to acquisitions		1,985			11,221
Payments of contingent consideration		(5,201	)		(12,515	)
(Gain) loss on remeasurement		(2,576	)		1,688
Ending balance		12,032			17,824
Level 3	$	12,032		$	17,824
Total liabilities measured at fair value	$	12,032		$	17,824

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Long - Term Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Long-term Debt

NOTE 9 LONG-TERM DEBT

On May 4, 2022, the Company entered into a credit agreement (the “2022 Credit Agreement”) among LifeStance Health Holdings, Inc., Lynnwood Intermediate Holdings, Inc., Capital One, National Association, and each lender party thereto. The 2022 Credit Agreement established commitments in respect of a term loan facility of $200,000, a revolving loan facility of up to $50,000 and a delayed draw term loan facility of up to $100,000. The commitments under the term loan facility and the revolving facility were available to be drawn on May 16, 2022. The Company borrowed $200,000 in term loans on that date, with a maturity date of May 16, 2028. The remaining commitments under the delayed draw term loan facility are scheduled to terminate on the second anniversary of May 16, 2022. Once drawn upon, the delayed draw term loan facility has a maturity date of May 16, 2028. The loans under the term loan facility and the delayed draw term loan facility bear interest at a rate per annum equal to (x) adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus an applicable margin of 4.50% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus 1.00%) plus an applicable margin of 3.50%. The term loans are collateralized by substantially all of the assets of the Company. The revolving loan has interest only payments until the maturity date of May 16, 2027.

The 2022 Credit Agreement requires the Company to maintain compliance with certain restrictive financial covenants related to earnings, leverage ratios, and other financial metrics. The Company was in compliance with all debt covenants at June 30, 2023 and December 31, 2022.

Long-term debt consists of the following:

	June 30, 2023			December 31, 2022
Term loans	$	198,500		$	199,500
Delayed Draw loans		59,291			34,464
Total long-term debt		257,791			233,964
Less: Current portion of long-term debt		(2,595	)		(2,345	)
Less: Unamortized discount and debt issue costs (1)		(6,478	)		(6,540	)
Total Long-Term Debt, Net of Current Portion    and Unamortized Discount and Debt Issue Costs	$	248,718		$	225,079

(1)The unamortized debt issue costs related to long-term debt are presented as a reduction of the carrying amount of the corresponding liabilities on the unaudited consolidated balance sheets. Unamortized debt issue costs related to delayed draw term loan commitments and revolving loans are presented within other noncurrent assets on the unaudited consolidated balance sheets.

The current portion of long-term debt is included within other current liabilities on the unaudited consolidated balance sheets.

Interest expense, net consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest expense, net	$	5,119	$	7,133	$	10,211	$	10,574

Future principal payments on long-term debt as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	1,298
2024		2,595
2025		2,595
2026		2,595
2027		2,595
Thereafter		246,113
Total	$	257,791

The fair value of long-term debt is based on the present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities, which is a Level 2 fair value measurement. Long-term debt is presented at carrying value on the unaudited consolidated balance sheets. The fair value of long-term debt at June 30, 2023 and December 31, 2022 was $262,681 and $235,049, respectively.

Revolving Loan

Under the 2022 Credit Agreement, the Company has a revolving loan commitment from Capital One in the amount of $50,000. Any borrowing on the revolving loan under the 2022 Credit Agreement is due in full on May 16, 2027. The revolving loan bears interest at a rate per annum equal to (x) adjusted term SOFR plus an applicable margin of 3.25% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR plus 1.00%) plus an applicable margin of 2.25%. The unused revolving loan incurs a commitment fee of 0.50% per annum.

In April 2023, the Company drew $25,000 from the aforementioned revolving loan and converted the outstanding balance on the revolving loan to a delayed draw term loan in May 2023. There are no amounts outstanding on the revolving loan as of June 30, 2023 and December 31, 2022.

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Stock - Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

NOTE 10 STOCK-BASED COMPENSATION

2021 Equity Incentive Plan

Effective June 9, 2021, the Company’s Board of Directors (the "Board") and its stockholders as of that date adopted and approved the LifeStance Health Group, Inc. 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan”). The 2021 Equity Incentive Plan permits the grant of awards or restricted or unrestricted common stock, stock options, stock appreciation rights, restricted stock units, performance awards, and other stock-based awards to employees and directors of, and consultants and advisors to, the Company and its affiliates. On January 1, 2023, the number of shares of common stock reserved and available for issuance under the 2021 Equity Incentive Plan increased by 18,798 shares.

Restricted Stock Awards ("RSA")

The following is a summary of RSA transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Unvested, December 31, 2022		16,796		$	11.98
Vested		(9,095	)		11.98
Forfeited		(1,965	)		11.98
Unvested, June 30, 2023		5,736		$	11.98

Restricted Stock Units ("RSU")

The following is a summary of RSU transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Outstanding, December 31, 2022		14,203		$	10.61
Granted		17,755			6.08
Vested		(4,006	)		12.86
Canceled and forfeited		(2,143	)		9.39
Outstanding, June 30, 2023		25,809		$	7.25

Stock Options

The following is a summary of stock option activity as of and for the six months ended June 30, 2023:

	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2022		13,476	$	7.42		9.70	$	—
Granted		—		—
Exercised		—		—				—
Canceled and forfeited		—		—
Outstanding, June 30, 2023		13,476	$	7.42		9.21	$	23,083
Vested or expected to vest at June 30, 2023		13,476	$	7.42		9.21	$	23,083

Stock-Based Compensation Expense

The Company recognized stock-based compensation expense related to RSAs, RSUs, and stock options within general and administrative expenses in the unaudited consolidated statements of operations and comprehensive loss as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Stock-based compensation expense	$	33,078	$	57,510	$	56,944	$	117,365

As of June 30, 2023, the Company had $199,683 in unrecognized compensation expense related to all non-vested awards (RSAs, RSUs and stock options) that will be recognized over the weighted-average remaining service period of 2.4 years.

2021 Employee Stock Purchase Plan

Effective June 9, 2021, the Board and its stockholders as of that date adopted and approved the LifeStance Health Group, Inc. 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP is more fully described in Note 14 in the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

As of June 30, 2023, no shares of common stock have been purchased under the Company’s ESPP.

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 INCOME TAXES

The (benefit) provision for income taxes is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
(Benefit) provision for income taxes	$	(6,542	)	$	923	$	(10,579	)	$	(5,753	)

The effective tax rates are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Effective tax rate		12.6	%		(1.4	)%		11.7	%		4.2	%

The difference between the Company’s effective tax rate and the U.S. statutory tax rate of 21% was primarily the result of non-deductible equity awards. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 12 COMMITMENTS AND CONTINGENCIES

Professional Liability Insurance

The medical malpractice insurance coverage is subject to a $3,000 per claim limit and an annual aggregate shared limit of $8,000. Should the claims-made policy not be renewed or replaced with equivalent insurance, claims based on occurrences during its term, but reported subsequently, would be uninsured. The Company is not aware of any unasserted claims, unreported incidents, or claims outstanding that are expected to exceed malpractice insurance coverage limits as of June 30, 2023 and December 31, 2022.

Health Care Industry

The health care industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, and government health care program participation requirements, reimbursement for patient services, and Medicare fraud and abuse. Recently, government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by health care providers. Violation of these laws and regulations could result in expulsion from government health care programs together with imposition of significant fines and penalties, as well as significant repayments for patient services billed.

Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. As a result of investigations by governmental agencies, various health care companies have received requests for information and notices regarding alleged noncompliance with those laws and regulations, which, in some instances, have resulted in companies entering into significant settlement agreements. Compliance with such laws and regulations may also be subject to future government review and interpretation as well as significant regulatory action, including fines, penalties, and potential exclusion from the related programs. There can be no assurance that regulatory authorities will not challenge the Company’s compliance with these laws and regulations, and it is not possible to determine the impact (if any) such claims or penalties would have upon the Company. In addition, the contracts the Company has with commercial payors also provide for retroactive audit and review of claims.

Management believes that the Company is in substantial compliance with fraud and abuse as well as other applicable government laws and regulations. While no regulatory inquiries have been made, compliance with such laws and regulations is subject to government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

General Contingencies

The Company is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions, injuries to employees, and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. There has been no significant reduction in insurance coverage from the previous year in any of the Company’s policies.

Litigation

The Company may be involved from time-to-time in legal actions relating to the ownership and operations of its business. Liabilities related to loss contingencies are recognized when the Company believes it is probable a liability has occurred and the amount can be reasonably estimated by management. The Company will establish an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated.

On August 10, 2022, a shareholder class action lawsuit captioned Nayani v. LifeStance Health Group, Inc., et al. was filed in the United States District Court for the Southern District of New York (the “Court”) against the Company and certain executives and board members (the “LifeStance Defendants”), as well as the underwriters of the Company’s initial public offering (the “IPO”) (collectively, “Defendants”). The lawsuit alleges, in part, that the Defendants violated Section 11 of the Securities Act of 1933 (the “Securities Act”) because the IPO registration statement purportedly contained inaccurate and misleading statements and/or failed to disclose certain facts concerning patient visits and clinician retention. The lawsuit also asserts that the LifeStance Defendants violated Section 15 of the Securities Act because they are control persons of the Company. The lawsuit seeks unspecified monetary damages and purports to represent all shareholders who purchased the Company’s common stock pursuant to the IPO registration statement. The process of resolving these matters is inherently uncertain and may develop over an extended period of time; therefore, at this time, the ultimate resolution cannot be predicted. The Company has not recorded any material accruals for loss contingencies and in management's opinion no material range of loss is estimable for this matter as of June 30, 2023.

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Net Loss Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

NOTE 13 NET LOSS PER SHARE

The following table presents the calculation of basic and diluted net loss per share (“EPS”) for the Company’s common shares:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net loss available to common stockholders'	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
Weighted-average shares used to compute basic and    diluted net loss per share		363,161			353,729			362,039			352,297
Net loss per share, basic and diluted	$	(0.13	)	$	(0.19	)	$	(0.22	)	$	(0.37	)

The Company has issued potentially dilutive instruments in the form of RSAs, RSUs and stock options. The Company did not include any of these instruments in its calculation of diluted loss per share for the three and six months ended June 30, 2023 and 2022 because to include them would be anti-dilutive due to the Company’s net loss during the period. See Note 10 for the issued, vested and unvested RSAs, RSUs and stock options. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share:

	As of June 30,
	2023		2022
RSAs		5,736		19,081
RSUs		25,809		14,994
Stock options		13,476		—
		45,021		34,075

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The Company has prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the SEC regarding interim financial reporting, which include the accounts of LifeStance, its wholly-owned subsidiaries and variable interest entities ("VIEs") in which LifeStance has an interest and is the primary beneficiary. Pursuant to these rules and regulations, the Company has omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly state its consolidated financial condition, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s audited financial statements for the year ended December 31, 2022 in the Company's Annual Report on Form 10-K.

Use of Accounting Estimates

Use of Accounting Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Variable Interest Entities

Variable Interest Entities

The Company evaluates its ownership, contractual and other interests in entities to determine if it has any variable interest in a VIE. These evaluations are complex, involve judgment, and the use of estimates and assumptions based on available information. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. The Company performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change.

The Company acquires and operates certain care centers which are deemed to be Friendly-Physician Entities (“FPEs”). As part of an FPE acquisition, the Company acquires 100% of the non-medical assets, however due to legal requirements the physician-owners must retain 100% of the equity interest. The Company’s agreements with FPEs generally consist of both a Management Service Agreement, which provides for various administrative and management services to be provided by the Company to the FPE, and Stock Transfer Restriction (“STR”) agreements with the physician-owners of the FPEs, which provide for the transition of ownership interests of the FPEs under certain conditions. The outstanding voting equity instruments of the FPEs are owned by the nominee shareholders appointed by the Company under the terms of the STR agreements. The Company has the right to receive income as an ongoing management fee, which effectively absorbs all of the residual interests and has also provided financial support through loans to the FPEs. The Company has exclusive responsibility for the provision of all nonmedical services including facilities, technology and intellectual property required for the day-to-day operation and management of each of the FPEs, and makes recommendations to the FPEs in establishing the guidelines for the employment and compensation of the physicians and other employees of the FPEs. In addition, the STR agreements provide that the Company has the right to designate an appropriately licensed person(s) to purchase the equity interest of the FPE for a nominal amount in the event of a succession event at the Company’s discretion. Based on the

provisions of these agreements, the Company determined that the FPEs are VIEs due to the equity holder having insufficient capital at risk, and the Company has a variable interest in the FPEs.

The contractual arrangements described above allow the Company to direct the activities that most significantly affect the economic performance of the FPEs. Accordingly, the Company is the primary beneficiary of the FPEs and consolidates the FPEs under the VIE model. Furthermore, as a direct result of nominal initial equity contributions by the physicians, the financial support the Company provides to the FPEs (e.g., loans) and the provisions of the contractual arrangements and nominee shareholder succession arrangements described above, the interests held by noncontrolling interest holders lack economic substance and do not provide them with the ability to participate in the residual profits or losses generated by the FPEs. Therefore, all income and expenses recognized by the FPEs are allocated to the Company. The Company does not hold interests in any VIEs for which the Company is not deemed to be the primary beneficiary.

As noted previously, the Company acquires 100% of the non-medical assets of the VIEs. The aggregate carrying values of the VIEs total assets and total liabilities not purchased by the Company but included on the consolidated balance sheets were not material at June 30, 2023 and December 31, 2022.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less at the time of purchase. Cash and cash equivalents consist of demand deposits held with financial institutions and investments in money market funds.

Emerging Growth Company Status

Emerging Growth Company Status

The Company is currently an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the Company's unaudited consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

As of June 30, 2023, the market value of the Company's common stock held by non-affiliates exceeded $700 million. As a result, the Company will become a large accelerated filer beginning January 1, 2024 for future filings and will no longer be an emerging growth company. As a large accelerated filer, the Company will be subject to certain disclosure and compliance requirements that apply to other public companies but did not previously apply to the Company due to its status as an emerging growth company. These requirements include, but are not limited to: the requirement that the Company's independent registered public accounting firm attest to the effectiveness of the Company's internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; compliance with any requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditors' report providing additional information about the audit and the financial statements; the requirement that the Company provide more detailed disclosures regarding executive compensation; and, the requirement that the Company hold a non-binding advisory vote on executive compensation and obtain shareholder approval of any golden parachute payments not previously approved.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326)-Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The estimate of expected credit losses requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The CECL model is expected to result in more timely recognition of credit losses. The Company adopted the standard on January 1, 2023 using the modified retrospective adoption method and did not have a material impact to the consolidated financial statements. The Company makes estimates of expected credit losses based on a combination of factors, including historical losses adjusted for current market conditions, the Company's customers' financial condition, delinquency trends, aging behaviors of receivables and credit and liquidity indicators, and future market and economic conditions and regularly reviews the adequacy of the allowance for credit losses.

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Total Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Disaggregation of Revenue [Abstract]

Schedule of revenue from patients and third - party payors

The payor mix of fee-for-service revenue from patients and third-party payors consists of the following:

	Three Months Ended June 30,										Six Months Ended June 30,
	2023					2022					2023					2022
	Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue
Commercial	$	235,896		91	%	$	189,061		91	%	$	464,815		91	%	$	372,670		91	%
Government		10,999		4	%		9,063		4	%		21,950		4	%		17,896		4	%
Self-pay		10,384		4	%		8,723		4	%		20,131		4	%		17,098		4	%
Total patient service    revenue		257,279		99	%		206,847		99	%		506,896		99	%		407,664		99	%
Nonpatient service    revenue		2,299		1	%		2,680		1	%		5,271		1	%		4,958		1	%
Total	$	259,578		100	%	$	209,527		100	%	$	512,167		100	%	$	412,622		100	%

Schedule of percentage of revenue from insurance companies

Among the commercial payors, the table below represents insurance companies that individually represented 10% or more of revenue:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Payor A		19	%		19	%		19	%		19	%
Payor B		13	%		14	%		13	%		14	%

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Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consists of the following:

	June 30, 2023			December 31, 2022
Leasehold improvements	$	162,494		$	148,249
Computers and peripherals		27,701			26,650
Internal-use software		8,352			7,894
Furniture, fixtures and equipment		40,709			36,437
Medical equipment		950			950
Construction in process		11,285			16,892
Total	$	251,491		$	237,072
Less: Accumulated depreciation		(58,347	)		(42,883	)
Total property and equipment, net	$	193,144		$	194,189

Schedule of Depreciation Expense

Depreciation expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Depreciation expense	$	9,354	$	6,750	$	18,250	$	12,477

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Summary of Components of Lease Expense

The components of lease expense for the Company's operating leases in its unaudited consolidated statements of operations and comprehensive loss were as follows:

	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Operating lease costs	$	14,264	$	28,572

Variable lease costs and short-term lease costs were not material.

The weighted-average remaining lease term and discount rate for operating lease liabilities included in the consolidated balance sheets are as follows:

	June 30, 2023			December 31, 2022
Weighted-average remaining lease term (in years)		5.0			5.3
Weighted-average discount rate		6.77	%		6.47	%

Summary of Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases was as follows:

	Six Months Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	30,995
Noncash lease activity
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	14,554

Summary of Future Minimum Lease Payments

The future minimum lease payments under noncancellable operating leases as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	25,987
2024		64,960
2025		61,345
2026		53,713
2027		40,457
Thereafter		49,810
Total lease payments	$	296,272
Less: imputed interest		(47,240	)
Total lease liabilities	$	249,032

Schedule of Unaudited Consolidated Balance Sheets in Connection with Leases with Related Parties

The Company recognized the following amounts in its unaudited consolidated balance sheets in connection with leases with related parties:

	June 30, 2023		December 31, 2022
Right-of-use assets	$	2,770	$	5,058
Operating lease liabilities, current		549		1,324
Operating lease liabilities, noncurrent		2,315		3,902

Schedule of Total Rent Expense

Total rent expense amounted to as follows in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Related-party rent expense	$	391	$	778
Third-party rent expense		12,137		23,296
Total lease cost	$	12,528	$	24,074

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill

The following table summarizes changes in the carrying amount of goodwill:

	Amount
Balance as of December 31, 2022	$	1,272,939
Business acquisitions (Note 7)		20,733
Measurement period adjustments		(170	)
Balance as of June 30, 2023	$	1,293,502

Summary of Intangible Assets

Intangible assets consist of the following:

June 30, 2023	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,694	$	(20,358	)	$	16,336		5.0
LifeStance trade names		235,500		(32,791	)		202,709		22.5
Non-competition agreements		94,535		(69,792	)		24,743		4.2
Total intangible assets	$	366,729	$	(122,941	)	$	243,788

December 31, 2022	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Regional trade names	$	36,259	$	(16,688	)	$	19,571		5.0
LifeStance trade names		235,500		(27,557	)		207,943		22.5
Non-competition agreements		94,127		(58,347	)		35,780		4.2
Total intangible assets	$	365,886	$	(102,592	)	$	263,294

Summary of Intangible Assets Amortization Expense

Gross carrying amount is based on the fair value of the intangible assets determined at the acquisition date. Total intangible asset amortization expense consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amortization expense	$	10,176	$	9,993	$	20,349	$	19,950

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Summary Of Consideration Transferred

Total consideration transferred for these acquisitions consisted of the following:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Cash consideration	$	12,600	$	20,000	$	35,925
Contingent consideration, at initial fair value		3,213		1,985		5,683
Total consideration transferred	$	15,813	$	21,985	$	41,608

Schedule of Recognized Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
Allocation of Purchase Price	June 30, 2022		2023		2022
Cash	$	430	$	181	$	851
Patient accounts receivable		707		372		1,193
Prepaid expenses and other current assets		166		138		230
Property and equipment		19		221		53
Right-of-use assets		—		368		—
Other noncurrent assets		53		22		56
Intangible assets		901		843		1,683
Goodwill		14,526		20,733		39,227
Total assets acquired		16,802		22,878		43,293
Total liabilities assumed		989		893		1,685
Fair value of net assets	$	15,813	$	21,985	$	41,608

The majority of the tangible assets acquired and liabilities assumed were recorded at their carrying values as of the respective dates of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of goodwill and other intangible assets acquired in these acquisitions were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. The Company developed estimates for the expected future cash flows and discount rates used in the present value calculations.

Schedule of Fair Values of Acquired Intangible Assets

The following table summarizes the fair values of acquired intangible assets as of the dates of acquisition:

	Three Months Ended		Six Months Ended June 30,
	June 30, 2022		2023		2022
Regional trade names (1)	$	555	$	435	$	897
Non-competition agreements (2)		346		408		786
Total	$	901	$	843	$	1,683

(1)Useful lives for regional trade names are 5 years.

(2)Useful lives for non-competition agreements are 5 years.

Schedule of Maximum Contingent Consideration Based on the Acquisition Agreements

The following table summarizes the maximum contingent consideration based on the acquisition agreements:

	Three Months Ended		Six Months Ended June 30,
Contingent consideration	June 30, 2022		2023		2022
Maximum contingent consideration based on acquisition    agreements	$	4,200	$	2,650	$	7,200

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Summary of the Significant Assumptions Used for the Fair Value Measurement of the Contingent Consideration Liability

The following is the summary of the significant assumptions used for the fair value measurement of the contingent consideration liability as of June 30, 2023 and December 31, 2022.

Valuation Technique	Range of Significant Assumptions
		June 30, 2023	December 31, 2022
Probability-weighted analysis	Probability	50% - 100%	50% - 100%
based earn-outs	Discount rate	9.0%	8.0%

Schedule of Location of the Interest Rate Swap

The following table summarizes the location of the interest rate swap in the unaudited consolidated balance sheets:

	Consolidated balance sheets location	June 30, 2023		December 31, 2022
Interest rate swap	Other noncurrent assets	$	5,611	$	4,426

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:

	June 30, 2023			December 31, 2022
Assets Measured at Fair Value
Money market funds	$	57,021		$	—
Level 1	$	57,021		$	—
Interest rate swap asset	$	5,611		$	4,426
Level 2	$	5,611		$	4,426
Total assets measured at fair value	$	62,632		$	4,426
Liabilities Measured at Fair Value
Contingent consideration liability:
Beginning balance	$	17,824		$	17,430
Additions related to acquisitions		1,985			11,221
Payments of contingent consideration		(5,201	)		(12,515	)
(Gain) loss on remeasurement		(2,576	)		1,688
Ending balance		12,032			17,824
Level 3	$	12,032		$	17,824
Total liabilities measured at fair value	$	12,032		$	17,824

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Long - Term Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Summary of Long-term Debt Instruments

Long-term debt consists of the following:

	June 30, 2023			December 31, 2022
Term loans	$	198,500		$	199,500
Delayed Draw loans		59,291			34,464
Total long-term debt		257,791			233,964
Less: Current portion of long-term debt		(2,595	)		(2,345	)
Less: Unamortized discount and debt issue costs (1)		(6,478	)		(6,540	)
Total Long-Term Debt, Net of Current Portion    and Unamortized Discount and Debt Issue Costs	$	248,718		$	225,079

(1)The unamortized debt issue costs related to long-term debt are presented as a reduction of the carrying amount of the corresponding liabilities on the unaudited consolidated balance sheets. Unamortized debt issue costs related to delayed draw term loan commitments and revolving loans are presented within other noncurrent assets on the unaudited consolidated balance sheets.

Summary of Interest Expense

Interest expense, net consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest expense, net	$	5,119	$	7,133	$	10,211	$	10,574

Summary of Maturities of Long-term Debt

Future principal payments on long-term debt as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	1,298
2024		2,595
2025		2,595
2026		2,595
2027		2,595
Thereafter		246,113
Total	$	257,791

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Stock- Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Restricted Stock Awards (RSA) Activity

The following is a summary of RSA transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Unvested, December 31, 2022		16,796		$	11.98
Vested		(9,095	)		11.98
Forfeited		(1,965	)		11.98
Unvested, June 30, 2023		5,736		$	11.98

Summary of Restricted Stock Unit (RSU) Activity

The following is a summary of RSU transactions as of and for the six months ended June 30, 2023:

	Unvested Shares			Weighted-Average Grant Date Fair Value
Outstanding, December 31, 2022		14,203		$	10.61
Granted		17,755			6.08
Vested		(4,006	)		12.86
Canceled and forfeited		(2,143	)		9.39
Outstanding, June 30, 2023		25,809		$	7.25

Summary of Stock Option Activity

The following is a summary of stock option activity as of and for the six months ended June 30, 2023:

	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2022		13,476	$	7.42		9.70	$	—
Granted		—		—
Exercised		—		—				—
Canceled and forfeited		—		—
Outstanding, June 30, 2023		13,476	$	7.42		9.21	$	23,083
Vested or expected to vest at June 30, 2023		13,476	$	7.42		9.21	$	23,083

Summary of Stock Based Compensation Expense

The Company recognized stock-based compensation expense related to RSAs, RSUs, and stock options within general and administrative expenses in the unaudited consolidated statements of operations and comprehensive loss as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Stock-based compensation expense	$	33,078	$	57,510	$	56,944	$	117,365

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Tax Expense (Benefit)

The (benefit) provision for income taxes is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
(Benefit) provision for income taxes	$	(6,542	)	$	923	$	(10,579	)	$	(5,753	)

Schedule of Effective Tax Rates

The effective tax rates are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Effective tax rate		12.6	%		(1.4	)%		11.7	%		4.2	%

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

The following table presents the calculation of basic and diluted net loss per share (“EPS”) for the Company’s common shares:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net loss available to common stockholders'	$	(45,478	)	$	(68,727	)	$	(79,720	)	$	(131,055	)
Weighted-average shares used to compute basic and    diluted net loss per share		363,161			353,729			362,039			352,297
Net loss per share, basic and diluted	$	(0.13	)	$	(0.19	)	$	(0.22	)	$	(0.37	)

Computation of Diluted Net Loss per Share

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share:

	As of June 30,
	2023		2022
RSAs		5,736		19,081
RSUs		25,809		14,994
Stock options		13,476		—
		45,021		34,075

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Business Acquisition, Contingent Consideration [Line Items]

Schedule of Maximum Contingent Consideration Based on the Acquisition Agreements

The following table summarizes the maximum contingent consideration based on the acquisition agreements:

	Three Months Ended		Six Months Ended June 30,
Contingent consideration	June 30, 2022		2023		2022
Maximum contingent consideration based on acquisition    agreements	$	4,200	$	2,650	$	7,200

Schedule Of Related-party Rent Expense

Total rent expense amounted to as follows in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Related-party rent expense	$	391	$	778
Third-party rent expense		12,137		23,296
Total lease cost	$	12,528	$	24,074

Summary of Future Minimum Lease Payments

The future minimum lease payments under noncancellable operating leases as of June 30, 2023 are as follows:

Year Ended December 31,	Amount
Remainder of 2023	$	25,987
2024		64,960
2025		61,345
2026		53,713
2027		40,457
Thereafter		49,810
Total lease payments	$	296,272
Less: imputed interest		(47,240	)
Total lease liabilities	$	249,032

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Schedule Of Related-party Rent Expense

Total rent expense amounted to as follows in the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Related-party rent expense	$	391	$	778
Third-party rent expense		12,137		23,296
Total lease cost	$	12,528	$	24,074

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Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions	Jun. 30, 2023 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Acquisition of Non Medical Assets	100.00%
Common stock held by non affiliates	$ 700

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Total Revenue - Additional Information (Details)	Mar. 31, 2023
Minimum [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
% of Total Revenue	10.00%

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Total Revenue - Schedule of Revenue From Patients And Third - Party Payors (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 259,578	$ 209,527	$ 512,167	$ 412,622
% of Total Revenue	100.00%	100.00%	100.00%	100.00%
Commercial
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 235,896	$ 189,061	$ 464,815	$ 372,670
% of Total Revenue	91.00%	91.00%	91.00%	91.00%
Government
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 10,999	$ 9,063	$ 21,950	$ 17,896
% of Total Revenue	4.00%	4.00%	4.00%	4.00%
Self-pay
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 10,384	$ 8,723	$ 20,131	$ 17,098
% of Total Revenue	4.00%	4.00%	4.00%	4.00%
Total patient service revenue
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 257,279	$ 206,847	$ 506,896	$ 407,664
% of Total Revenue	99.00%	99.00%	99.00%	99.00%
Nonpatient service revenue
Health Care Organization Receivable And Revenue Disclosures [Line Items]
Amount	$ 2,299	$ 2,680	$ 5,271	$ 4,958
% of Total Revenue	1.00%	1.00%	1.00%	1.00%

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Total Revenue - Schedule of Percentage Of Revenue From Insurance Companies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Health Care Organization Receivable And Revenue Disclosures [Line Items]
% of Total Revenue	100.00%	100.00%	100.00%	100.00%
Payor A
Health Care Organization Receivable And Revenue Disclosures [Line Items]
% of Total Revenue	19.00%	19.00%	19.00%	19.00%
Payor B
Health Care Organization Receivable And Revenue Disclosures [Line Items]
% of Total Revenue	13.00%	14.00%	13.00%	14.00%

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Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Total	$ 251,491	$ 237,072
Less: Accumulated depreciation	(58,347)	(42,883)
Total property and equipment, net	193,144	194,189
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Total	162,494	148,249
Computers and Peripherals [Member]
Property Plant And Equipment [Line Items]
Total	27,701	26,650
Internal-use software [Member]
Property Plant And Equipment [Line Items]
Total	8,352	7,894
Furniture, Fixtures and Equipment [Member]
Property Plant And Equipment [Line Items]
Total	40,709	36,437
Medical Equipment [Member]
Property Plant And Equipment [Line Items]
Total	950	950
Construction in Process [Member]
Property Plant And Equipment [Line Items]
Total	$ 11,285	$ 16,892

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Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 9,354	$ 6,750	$ 18,250	$ 12,477

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Leases - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration]	Related party	Related party
Operating lease costs	$ 14,264	$ 28,572
Variable lease costs		0
Short-term lease costs		0
Related party
Lessee, Lease, Description [Line Items]
Related party lease expenses	$ 205	$ 417
Maximum
Lessee, Lease, Description [Line Items]
Operating leases renewal term	7 years	7 years
Minimum
Lessee, Lease, Description [Line Items]
Operating leases renewal term	1 year	1 year

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Leases - Summary of Components of Lease Expense for the Company's Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Leases [Abstract]
Operating lease costs	$ 14,264	$ 28,572

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Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details)	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (in years)	5 years	5 years 3 months 18 days
Weighted-average discount rate	6.77%	6.47%

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Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 30,995
Non Cash Leases Activity Abstract
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$ 14,554

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Leases - Summary of Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 25,987
2024	64,960
2025	61,345
2026	53,713
2027	40,457
Thereafter	49,810
Total lease payments	296,272
Less: imputed interest	(47,240)
Total lease liabilities	$ 249,032

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Leases - Schedule of Unaudited Consolidated Balance Sheets in Connection with Leases with Related Parties (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Right-of-use assets	$ 191,381	$ 199,431
Operating lease liabilities, current	43,446	38,824
Operating lease liabilities, noncurrent	205,586	212,586
Related party
Right-of-use assets	2,770	5,058
Operating lease liabilities, current	549	1,324
Operating lease liabilities, noncurrent	$ 2,315	$ 3,902

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Leases - Schedule Of Total Rent Expense (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Operating Leased Assets [Line Items]
Total lease cost	$ 12,528	$ 24,074
Third Party
Operating Leased Assets [Line Items]
Total lease cost	12,137	23,296
Related party
Operating Leased Assets [Line Items]
Total lease cost	$ 391	$ 778

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Goodwill and Intangible Assets - Summary of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Line Items]
Beginning balance	$ 1,272,939
Business acquisitions	20,733
Measurement period adjustment	(170)
Ending balance	$ 1,293,502

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Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 366,729	$ 365,886
Accumulated Amortization	(122,941)	(102,592)
Net Carrying Amount	243,788	263,294
Regional Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,694	36,259
Accumulated Amortization	(20,358)	(16,688)
Net Carrying Amount	$ 16,336	$ 19,571
Weighted Average Useful Life (Years)	5 years	5 years
Life Stance Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 235,500	$ 235,500
Accumulated Amortization	(32,791)	(27,557)
Net Carrying Amount	$ 202,709	$ 207,943
Weighted Average Useful Life (Years)	22 years 6 months	22 years 6 months
Non-Competition Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 94,535	$ 94,127
Accumulated Amortization	(69,792)	(58,347)
Net Carrying Amount	$ 24,743	$ 35,780
Weighted Average Useful Life (Years)	4 years 2 months 12 days	4 years 2 months 12 days

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Goodwill and Intangible Assets - Summary of Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 10,176	$ 9,993	$ 20,349	$ 19,950

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Business Combinations - Additional Information (Details) - Facility	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Combinations [Abstract]
Acquisitions of outpatient mental health practices	0	4	3	6

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Business Combinations - Summary of Consideration Transferred (Details) - Outpatient Mental Health Practices - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Cash consideration	$ 12,600	$ 20,000	$ 35,925
Total consideration transferred	15,813	21,985	41,608
Class A-2 Common Units [Member]
Business Acquisition [Line Items]
Contingent consideration, at initial fair value	$ 3,213	$ 1,985	$ 5,683

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Business Combinations - Schedule of Fair Value Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Combinations [Abstract]
Cash	$ 430	$ 181	$ 851
Patient accounts receivable	707	372	1,193
Prepaid expenses and other current assets	166	138	230
Property and equipment	19	221	53
Right-of-use assets	0	368	0
Other noncurrent assets	53	22	56
Intangible assets	901	843	1,683
Goodwill	14,526	20,733	39,227
Total assets acquired	16,802	22,878	43,293
Total liabilities assumed	989	893	1,685
Fair value of net assets	$ 15,813	$ 21,985	$ 41,608

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Business Combinations - Schedule of Fair Values of Acquired Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Acquired intangible assets, Fair value		$ 901	$ 843	$ 1,683
Regional Trade Names [Member]
Business Acquisition [Line Items]
Acquired intangible assets, Fair value	[1]	555	435	897
Non-Competition Agreements [Member]
Business Acquisition [Line Items]
Acquired intangible assets, Fair value	[2]	$ 346	$ 408	$ 786

[1] Useful lives for regional trade names are 5 years.

[2] Useful lives for non-competition agreements are 5 years.

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Business Combinations - Schedule of Fair Values of Acquired Intangible Assets (Parenthetical) (Details)	Jun. 30, 2023
Regional Trade Names [Member]
Business Acquisition [Line Items]
Useful lives for acquired intangible assets	5 years
Non-Competition Agreements [Member]
Business Acquisition [Line Items]
Useful lives for acquired intangible assets	5 years

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Business Combinations - Schedule of Maximum Contingent Consideration Based on the Acquisition Agreements (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Contingent Consideration [Member]
Business Acquisition [Line Items]
Maximum contingent consideration based on acquisition agreements	$ 4,200	$ 2,650	$ 7,200

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Fair Value Measurements - Summary of the Significant Assumptions Used for the Fair Value Measurement of the Contingent Consideration Liability (Details)	Jun. 30, 2023	Dec. 31, 2022
Minimum | Probability Weighted Analysis
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	0.50	0.50
Minimum | F T E Based Earn Outs
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	0.09	0.08
Maximum | Probability Weighted Analysis
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Measurement Input	1	1

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Fair Value Measurements - Schedule of location of the interest rate swap (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 62,632	$ 4,426
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other noncurrent assets
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 5,611	$ 4,426

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Fair Value Measurements - Summary of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset	$ 62,632	$ 4,426
Beginning balance	17,824	17,430
Additions related to acquisitions	1,985	11,221
Payments of contingent consideration	(5,201)	(12,515)
(Gain) loss on remeasurement	(2,576)	1,688
Ending balance	12,032	17,824
Derivative Liability	12,032	17,824
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset	57,021	0
Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset	5,611	4,426
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset	57,021	0
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Asset	5,611	4,426
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative Liability	$ 12,032	$ 17,824

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Fair Value Measurements - Additional Information (Details) - Interest Rate Swap - USD ($)	Jun. 30, 2023	Aug. 31, 2022
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Percent of Debt Exposed		94.50%
Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative, Fixed Interest Rate		3.24%
Derivative, Notional Amount	$ 187,583	$ 189,000

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Long - Term Debt - Summary of Long-term Debt Instruments (Detail) - USD ($)		Jun. 30, 2023	Dec. 31, 2022	May 04, 2022
Debt Instrument [Line Items]
Term loans		$ 248,718,000	$ 225,079,000
Less: Current portion of long-term debt		(2,595,000)	(2,345,000)
Less: Unamortized discount and debt issue costs	[1]	(6,478,000)	(6,540,000)
Total		257,791,000	233,964,000
Term Loans
Debt Instrument [Line Items]
Total		198,500,000	199,500,000	$ 200,000
Delayed Drawn Loans
Debt Instrument [Line Items]
Total		$ 59,291,000	$ 34,464,000

[1] The unamortized debt issue costs related to long-term debt are presented as a reduction of the carrying amount of the corresponding liabilities on the unaudited consolidated balance sheets. Unamortized debt issue costs related to delayed draw term loan commitments and revolving loans are presented within other noncurrent assets on the unaudited consolidated balance sheets.

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Long - Term Debt - Additional Information (Detail) - USD ($)		6 Months Ended
	May 04, 2022	Jun. 30, 2023	Apr. 01, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term Debt, Fair Value		$ 262,681,000		$ 235,049
Long term debt fair value		257,791,000		233,964,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Loan withdrawal amount			$ 25,000,000
Revolving loan outstanding amount			$ 25,000,000
2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Term loan facility	$ 200,000
Debt instrument, basis spread on variable rate	1.00%
2022 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Loan withdrawal amount		0		0
Maximum borrowing capacity		$ 50,000
Unused revolving loan commitment fee percentage		0.005
Revolving loan outstanding amount		$ 0		0
Revolving loan,expiration date		May 16, 2027
Term Loans
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayment Terms	May 16, 2028
Long term debt fair value	$ 200,000	$ 198,500,000		199,500,000
Delayed Drawn Loans
Debt Instrument [Line Items]
Long term debt fair value		$ 59,291,000		$ 34,464,000
Maximum | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Loan withdrawal amount	50,000
Revolving loan outstanding amount	50,000
Maximum | Delayed Drawn Loans | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Aggregate loan commitment amount	$ 100,000
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayment Terms	May 16, 2027
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.75%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | 2022 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	4.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | 2022 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		3.25%
Federal Funds Rate | 2022 Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Federal Funds Rate | 2022 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.50%
Base Rate | 2022 Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.25%

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Long - Term Debt - Summary of Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Disclosure [Abstract]
Interest expense, net	$ 5,119	$ 7,133	$ 10,211	$ 10,574

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Long - Term Debt - Future Principal Payments on Long Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Remainder of 2023	$ 1,298
2024	2,595
2025	2,595
2026	2,595
2027	2,595
Thereafter	246,113
Total	$ 257,791	$ 233,964

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Income Taxes - Schedule of Provision for Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
(Benefit) provision for income taxes	$ (6,542)	$ 923	$ (10,579)	$ (5,753)

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Income Taxes - Schedule of Effective Tax Rates (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Effective tax rate	12.60%	(1.40%)	11.70%	4.20%

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Income Taxes - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Statutory tax rate	21.00%

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Commitments and Contingencies - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Medical malpractice insurance, coverage per claim limit	$ 3,000
Medical malpractice insurance, annual coverage per clinician	$ 8,000

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Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net loss available to common stockholders'	$ (45,478)	$ (68,727)	$ (79,720)	$ (131,055)
Weighted-average shares used to compute basic and diluted net loss per share	363,161	353,729	362,039	352,297
Net loss per share, basic	$ (0.13)	$ (0.19)	$ (0.22)	$ (0.37)
Net loss per share, diluted	$ (0.13)	$ (0.19)	$ (0.22)	$ (0.37)

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Net Loss Per Share - Computation of Diluted Net Loss per Share (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per share	45,021	34,075
Restricted Stock Awards RSA [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per share	5,736	19,081
Restricted Stock Units RSU [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per share	25,809	14,994
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted net loss per share	13,476	0

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Stock - Based Compensation - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jan. 01, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	$ 199,683
Unrecognized compensattion expense, weighted-average period	2 years 4 months 24 days
2021 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance		18,798
2021 Employee Stock Purchase Plan [Member] | Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Stock Purchase Plans	0

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Stock - Based Compensation - Summary of Restricted Stock Awards (RSA) Activity (Details) - Restricted Stock Award	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding | shares	16,796
Vested | shares	(9,095)
Forfeited | shares	(1,965)
Outstanding | shares	5,736
Outstanding | $ / shares	$ 11.98
Vested | $ / shares	11.98
Canceled and forfeited | $ / shares	11.98
Outstanding | $ / shares	$ 11.98

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Stock - Based Compensation - Summary of Restricted Stock Unit (RSU) Activity (Details) - Restricted Stock Unit	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding | shares	14,203
Granted | shares	17,755
Vested | shares	(4,006)
Canceled and forfeited | shares	(2,143)
Outstanding | shares	25,809
Outstanding | $ / shares	$ 10.61
Granted | $ / shares	6.08
Vested | $ / shares	12.86
Canceled and forfeited | $ / shares	9.39
Outstanding | $ / shares	$ 7.25

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Stock - Based Compensation - Summary of Stock Option Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares options outstanding, Beginning Balance | shares	13,476
Number of options, granted | shares	0
Number of options, exercised | shares	0
Number of options, forfeited | shares	0
Number of shares options outstanding, Ending Balance | shares	13,476
Number of shares options, vested or expected to vest | shares	13,476
Weighted average exercise price outstanding, Beginning Balance | $ / shares	$ 7.42
Weighted average exercise price, granted | $ / shares	0
Weighted average exercise price, exercised | $ / shares	0
Weighted average exercise price, forfeited | $ / shares	0
Weighted average exercise price outstanding, Ending Balance | $ / shares	7.42
Weighted average exercise price, vested or expected to vest | $ / shares	$ 7.42
Weighted average remaining term in years, Outstanding, Beginning	9 years 8 months 12 days
Weighted average remaining term in years, Outstanding, Ending	9 years 2 months 15 days
Weighted average remaining contractual life, vested or expected to vest	9 years 2 months 15 days
Aggregate intrinsic value outstanding, Beginning Balance | $	$ 0
Aggregate intrinsic value, exercised | $	0
Aggregate intrinsic value outstanding, Ending Balance | $	23,083
Aggregate intrinsic value, vested or expected | $	$ 23,083

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Stock - Based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock and unit-based compensation expense	$ 33,078	$ 57,510	$ 56,944	$ 117,365

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Stockholders'/Members' Equity - Additional Information (Detail) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Subsidiary Sale Of Stock [Line Items]
Common Stock, Shares Authorized	800,000,000	800,000,000
Common Stock, par value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, Shares Outstanding	0	0

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Related Party Transactions - Schedule of Related Party Rent Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Related Party Transactions [Abstract]
Rent expense	$ 12,528	$ 24,074